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Family firms in entrepreneurial finance: The case of corporate venture capital

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  • Amore, Mario Daniele
  • Murtinu, Samuele
  • Pelucco, Valerio

Abstract

We show that families are an engine of venturing activities: almost 30 percent of corporate venture capital (CVC) deals in the US from 2000 to 2017 originated from family firms. Family firms, primarily those led by family CEOs, orchestrate CVC activities differently than non-family firms: they syndicate more often and with more reputable investors, join larger syndicates, and make more proximate deals (geography- and industry-wise). This approach to corporate venturing maps into performance results: family CVC-backed ventures exhibit a higher likelihood of successful exit. Collectively, our results shed light on the important, and largely unexplored, role of family firms in CVC.

Suggested Citation

  • Amore, Mario Daniele & Murtinu, Samuele & Pelucco, Valerio, 2025. "Family firms in entrepreneurial finance: The case of corporate venture capital," Journal of Banking & Finance, Elsevier, vol. 172(C).
    • Handle: RePEc:eee:jbfina:v:172:y:2025:i:c:s0378426625000123
    DOI: 10.1016/j.jbankfin.2025.107391
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    More about this item

    Keywords

    Corporate venture capital; Family firms; Investment; Performance;
    All these keywords.

    JEL classification:

    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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