The Impact of Green Patent Signals from Start-Up Enterprises on Venture Capital Acquisition

Significant information asymmetry often exists between start-ups and venture capital institutions, making it difficult for enterprises to achieve ideal valuations. To improve financing success rates, enterprises need to release signals reflecting their value to enhance competitiveness in the capital market. This study uses data on green granted patents and financing of start-ups from 2014 to 2024 to analyze the impact of green patent signals on venture capital, as well as the moderating roles of venture capital institution reputation, entrepreneurs’ backgrounds, and prior financing rounds. The results show a significant positive correlation between the quantity and quality of start-ups’ green granted patents and venture capital scale, with endogeneity analysis confirming the robustness of this conclusion. High reputation of venture capital institutions and more prior financing rounds weaken the financing effect of green patent quantity signals on venture capital, while their moderating effects on the relationship between green patent quality and venture capital are insignificant. Entrepreneurs with rich backgrounds strengthen the financing effect of both green patent quantity and quality signals. The nature of start-ups’ equity and whether they are located in Beijing, Shanghai, Guangzhou, or Shenzhen affect the financing effect of green patent signals, but the differences are not significant. These findings enrich research on venture capital and provide insights for venture capital institutions to optimize capital allocation and for start-ups to improve financing efficiency.