IDEAS home Printed from https://ideas.repec.org/a/bla/bstrat/v12y2003i4p240-253.html
   My bibliography  Save this article

The emergence of green venture capital

Author

Listed:
  • Jelena Randjelovic
  • Anastasia R. O'Rourke
  • Renato J. Orsato

Abstract

Innovative financing mechanisms are needed to facilitate sustainable development. In the past few years, socially responsible investments have emerged as a successful type of financing scheme but many eco‐oriented start‐up companies remain under‐funded. Apparently, environmental innovations have only recently caught the attention of an important financial sector: venture capital (VC). The article describes the emerging phenomenon of environment‐related VC (or green VC) and provides an overview of the current market for this type of investment. The paper delves into this industry, revealing its characteristics, processes and mechanisms. The study also uncovers the main problems faced by eco‐entrepreneurs as well as venture capitalists interested in this type of venture. Finally, it analyses the drivers for green VC and attempts to identify the sources of innovation and the uniqueness of these emerging financial products. Based on the analysis, the paper also derives a definition of green VC. Copyright © 2003 John Wiley & Sons, Ltd and ERP Environment.

Suggested Citation

  • Jelena Randjelovic & Anastasia R. O'Rourke & Renato J. Orsato, 2003. "The emergence of green venture capital," Business Strategy and the Environment, Wiley Blackwell, vol. 12(4), pages 240-253, July.
    • Handle: RePEc:bla:bstrat:v:12:y:2003:i:4:p:240-253
    DOI: 10.1002/bse.361
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/bse.361
    Download Restriction: no
    File URL: https://libkey.io/10.1002/bse.361?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Rennings, Klaus, 2000. "Redefining innovation -- eco-innovation research and the contribution from ecological economics," Ecological Economics, Elsevier, vol. 32(2), pages 319-332, February.
    2. Gompers, Paul A., 1998. "Venture capital growing pains: Should the market diet?," Journal of Banking & Finance, Elsevier, vol. 22(6-8), pages 1089-1104, August.
    3. Thomas Dyllick & Kai Hockerts, 2002. "Beyond the business case for corporate sustainability," Business Strategy and the Environment, Wiley Blackwell, vol. 11(2), pages 130-141, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tommaso Cappellari & Gianluca Gucciardi, 2023. "Equity Investments and Environmental Pressure: The Role of Venture Capital," Sustainability, MDPI, vol. 16(1), pages 1-17, December.
    2. Laura Toschi & Elisa Ughetto & Andrea Fronzetti Colladon, 2023. "The identity of social impact venture capitalists: exploring social linguistic positioning and linguistic distinctiveness through text mining," Small Business Economics, Springer, vol. 60(3), pages 1249-1280, March.
    3. Pelin Demirel & Gamze Ozturk Danisman, 2019. "Eco‐innovation and firm growth in the circular economy: Evidence from European small‐ and medium‐sized enterprises," Business Strategy and the Environment, Wiley Blackwell, vol. 28(8), pages 1608-1618, December.
    4. Henk J. Steinz & Frank J. Van Rijnsoever & Frans Nauta, 2016. "How to Green the red Dragon: A Start‐ups' Little Helper for Sustainable Development in China," Business Strategy and the Environment, Wiley Blackwell, vol. 25(8), pages 593-608, December.
    5. María Andrea Trujillo Dávila & Alexander Guzmán Vásquez, 2008. "Venture capital: una mirada al constructo teórico, su rol en los nuevos emprendimientos y agenda de investigación futura," Revista Facultad de Ciencias Económicas, Universidad Militar Nueva Granada, June.
    6. Diane Holt, 2011. "Where are they now? tracking the longitudinal evolution of environmental businesses from the 1990s," Business Strategy and the Environment, Wiley Blackwell, vol. 20(4), pages 238-250, May.
    7. Marjo Elisa Siltaoja, 2014. "Revising the Corporate Social Performance Model – Towards Knowledge Creation for Sustainable Development," Business Strategy and the Environment, Wiley Blackwell, vol. 23(5), pages 289-302, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Antje Bierwisch & Lucas Huter & Juliana Pattermann & Oliver Som, 2021. "Taking Eco-Innovation to the Road—A Design-Based Workshop Concept for the Development of Eco-Innovative Business Models," Sustainability, MDPI, vol. 13(16), pages 1-25, August.
    2. Luigi Aldieri & Mohsen Brahmi & Bruna Bruno & Concetto Paolo Vinci, 2021. "Circular Economy Business Models: The Complementarities with Sharing Economy and Eco-Innovations Investments," Sustainability, MDPI, vol. 13(22), pages 1-13, November.
    3. Hockerts, Kai & Wüstenhagen, Rolf, 2010. "Greening Goliaths versus emerging Davids -- Theorizing about the role of incumbents and new entrants in sustainable entrepreneurship," Journal of Business Venturing, Elsevier, vol. 25(5), pages 481-492, September.
    4. Florian Lüdeke‐Freund, 2020. "Sustainable entrepreneurship, innovation, and business models: Integrative framework and propositions for future research," Business Strategy and the Environment, Wiley Blackwell, vol. 29(2), pages 665-681, February.
    5. Perri, Cecilia & Giglio, Carlo & Corvello, Vincenzo, 2020. "Smart users for smart technologies: Investigating the intention to adopt smart energy consumption behaviors," Technological Forecasting and Social Change, Elsevier, vol. 155(C).
    6. Sascha Kraus & Janina Burtscher & Christine Vallaster & Martin Angerer, 2018. "Sustainable Entrepreneurship Orientation: A Reflection on Status-Quo Research on Factors Facilitating Responsible Managerial Practices," Sustainability, MDPI, vol. 10(2), pages 1-21, February.
    7. Anna Kwiotkowska & Magdalena Gebczynska, 2021. "Causal Pathways of Innovation Orientation, Sustainability, Leadership and Social Performance," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 32-54.
    8. Lai, Kee-hung & Feng, Yunting & Zhu, Qinghua, 2023. "Digital transformation for green supply chain innovation in manufacturing operations," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 175(C).
    9. Mechthild Donner & Anne Verniquet & Jan Broeze & Katrin Kayser & Hugo de Vries, 2021. "Critical success and risk factors for circular business models valorising agricultural waste and by-products," Post-Print hal-03004851, HAL.
    10. Ioana Gutu & Daniela Tatiana Agheorghiesei & Alexandru Tugui, 2023. "Assessment of a Workforce Sustainability Tool through Leadership and Digitalization," IJERPH, MDPI, vol. 20(2), pages 1-30, January.
    11. Bobulescu, Roxana & Fritscheova, Aneta, 2021. "Convivial innovation in sustainable communities: Four cases in France," Ecological Economics, Elsevier, vol. 181(C).
    12. Lirios Alos-Simo & Antonio J. Verdu-Jover & Jose M. Gomez-Gras, 2020. "Knowledge Transfer in Sustainable Contexts: A Comparative Analysis of Periods of Financial Recession and Expansion," Sustainability, MDPI, vol. 12(12), pages 1-24, June.
    13. Hille, Erik & Althammer, Wilhelm & Diederich, Henning, 2020. "Environmental regulation and innovation in renewable energy technologies: Does the policy instrument matter?," Technological Forecasting and Social Change, Elsevier, vol. 153(C).
    14. Jolanta Pakulska, 2021. "The Eco-Innovation versus Economic Development on the EU Example," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 999-1008.
    15. Vitaliy Roud & Thomas Wolfgang Thurner, 2018. "The Influence of State‐Ownership on Eco‐Innovations in Russian Manufacturing Firms," Journal of Industrial Ecology, Yale University, vol. 22(5), pages 1213-1227, October.
    16. Jung Eon Kwon & Hyung Rok Woo, 2017. "The Impact of Flipped Learning on Cooperative and Competitive Mindsets," Sustainability, MDPI, vol. 10(1), pages 1-15, December.
    17. Rambaud, Alexandre & Richard, Jacques, 2015. "The “Triple Depreciation Line” instead of the “Triple Bottom Line”: Towards a genuine integrated reporting," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 33(C), pages 92-116.
    18. Maria Björklund & Helena Forslund, 2019. "Challenges Addressed by Swedish Third-Party Logistics Providers Conducting Sustainable Logistics Business Cases," Sustainability, MDPI, vol. 11(9), pages 1-15, May.
    19. Süsser, Diana & Döring, Martin & Ratter, Beate M.W., 2017. "Harvesting energy: Place and local entrepreneurship in community-based renewable energy transition," Energy Policy, Elsevier, vol. 101(C), pages 332-341.
    20. Merriam Haffar & Cory Searcy, 2018. "Target‐setting for ecological resilience: Are companies setting environmental sustainability targets in line with planetary thresholds?," Business Strategy and the Environment, Wiley Blackwell, vol. 27(7), pages 1079-1092, November.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:bstrat:v:12:y:2003:i:4:p:240-253. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1099-0836 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.