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Insights for sustainable business practices: Comparative impact of independent and corporate venture capital funding on financial and environmental performance

Author

Listed:
  • Fatima Shuwaikh

    (EMLV - École de management Léonard de Vinci)

  • Agathe Tanguy

    (Universidade Católica Portuguesa, Catolica Lisbon School of Business and Economics,)

  • Emmanuelle Dubocage

    (IRG - Institut de Recherche en Gestion - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12 - Université Gustave Eiffel)

  • Othman Alolah

    (Imam Mohammad Ibn Saud University, Riyadh, Saudi Arabia)

Abstract

This study aims to analyze the effects of venture capital (VC) financing schemes on the financial and environmental performance of their VC-backed companies. This research leverages a dataset including 325 U.S. firms between 2002 and 2022 and examines two issues of interest: independent venture capital (IVC) and corporate venture capital (CVC) funding. The results show that IVC-backed companies have significantly better environmental, social, and governance (ESG) ratings and emit fewer greenhouse gases (GHG) emissions when compared to companies backed by CVC. This highlights that the function of IVC is to improve the environmental sustainability of businesses. Together this helps provide a valuable perspective about which VC models (CVC, IVC) does have an impact on how businesses pursue sustainability practices alongside financial performance. This paper contributes to the sustainable entrepreneurship literature by focusing on the importance of funding types with performing sustainable practices.

Suggested Citation

  • Fatima Shuwaikh & Agathe Tanguy & Emmanuelle Dubocage & Othman Alolah, 2025. "Insights for sustainable business practices: Comparative impact of independent and corporate venture capital funding on financial and environmental performance," Post-Print halshs-04757199, HAL.
    • Handle: RePEc:hal:journl:halshs-04757199
    DOI: 10.1016/j.ribaf.2024.102632
    as

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