IDEAS home Printed from https://ideas.repec.org/p/arx/papers/2209.10518.html
   My bibliography  Save this paper

Sustainable Venture Capital

Author

Listed:
  • Sam Johnston

Abstract

Sustainability initiatives are set to benefit greatly from the growing involvement of venture capital, in the same way that other technological endeavours have been enabled and accelerated in the post-war period. With the spoils increasingly being shared between shareholders and other stakeholders, this requires a more nuanced view than the finance-first methodologies deployed to date. Indeed, it is possible for a venture-backed sustainability startup to deliver outstanding results to society in general without returning a cent to investors, though the most promising outcomes deliver profit with purpose, satisfying all stakeholders in ways that make existing 'extractive' venture capital seem hollow. To explore this nascent area, a review of related research was conducted and social entrepreneurs & investors interviewed to construct a questionnaire assessing the interests and intentions of current & future ecosystem participants. Analysis of 114 responses received via several sampling methods revealed statistically significant relationships between investing preferences and genders, generations, sophistication, and other variables, all the way down to the level of individual UN Sustainable Development Goals (SDGs).

Suggested Citation

  • Sam Johnston, 2022. "Sustainable Venture Capital," Papers 2209.10518, arXiv.org.
    • Handle: RePEc:arx:papers:2209.10518
    as

    Download full text from publisher

    File URL: http://arxiv.org/pdf/2209.10518
    File Function: Latest version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Günzel-Jensen, Franziska & Siebold, Nicole & Kroeger, Arne & Korsgaard, Steffen, 2020. "Do the United Nations’ Sustainable Development Goals matter for social entrepreneurial ventures? A bottom-up perspective," Journal of Business Venturing Insights, Elsevier, vol. 13(C).
    2. Muñoz, Pablo & Cacciotti, Gabriella & Cohen, Boyd, 2018. "The double-edged sword of purpose-driven behavior in sustainable venturing," Journal of Business Venturing, Elsevier, vol. 33(2), pages 149-178.
    3. Maxwell, Andrew L. & Jeffrey, Scott A. & Lévesque, Moren, 2011. "Business angel early stage decision making," Journal of Business Venturing, Elsevier, vol. 26(2), pages 212-225, March.
    4. Elena Antarciuc & Qinghua Zhu & Jaber Almarri & Senlin Zhao & Yunting Feng & Martin Agyemang, 2018. "Sustainable Venture Capital Investments: An Enabler Investigation," Sustainability, MDPI, vol. 10(4), pages 1-22, April.
    Full references (including those not matched with items on IDEAS)

    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. Singaram, Raja & Radu-Lefebvre, Miruna & Gartner, William B., 2023. "Gordian knot uncut: Understanding the problem of founder exit in social ventures," Journal of Business Venturing Insights, Elsevier, vol. 19(C).
    2. Clingingsmith, David & Shane, Scott, 2017. "Training Aspiring Entrepreneurs to Pitch Experienced Investors: Evidence from a Field Experiment in the United States," SocArXiv yzpvf, Center for Open Science.
    3. S. Sinan Erzurumlu & Nitin Joglekar & Moren Lévesque & Fehmi Tanrisever, 2019. "How Angel Know-How Shapes Ownership Sharing in Stage-Based Contracts," Entrepreneurship Theory and Practice, , vol. 43(4), pages 773-801, July.
    4. Li Yao & Jie Lu & Pingjun Sun, 2019. "Venture Capital and Industrial Structure Upgrading from the Perspective of Spatial Spillover," Sustainability, MDPI, vol. 11(23), pages 1-16, November.
    5. Chan, Chien Sheng Richard & Park, Haemin Dennis, 2013. "The influence of dispositional affect and cognition on venture investment portfolio concentration," Journal of Business Venturing, Elsevier, vol. 28(3), pages 397-412.
    6. David Clingingsmith & Scott Shane, 2018. "Training Aspiring Entrepreneurs to Pitch Experienced Investors: Evidence from a Field Experiment in the United States," Management Science, INFORMS, vol. 64(11), pages 5164-5179, November.
    7. Berger, Marius & Hottenrott, Hanna, 2021. "Start-up subsidies and the sources of venture capital," Journal of Business Venturing Insights, Elsevier, vol. 16(C).
    8. Hearn, Bruce, 2014. "The impact of institutions, ownership structure, business angels, venture capital and lead managers on IPO firm underpricing across North Africa," Journal of Multinational Financial Management, Elsevier, vol. 24(C), pages 19-42.
    9. Giorgio Mion & Cristian R. Loza Adaui, 2020. "Understanding the purpose of benefit corporations: an empirical study on the Italian case," International Journal of Corporate Social Responsibility, Springer, vol. 5(1), pages 1-15, December.
    10. Chan, C.S. Richard & Parhankangas, Annaleena & Sahaym, Arvin & Oo, Pyayt, 2020. "Bellwether and the herd? Unpacking the u-shaped relationship between prior funding and subsequent contributions in reward-based crowdfunding," Journal of Business Venturing, Elsevier, vol. 35(2).
    11. Cox, Kevin C. & Lortie, Jason & Stewart, Steven A., 2017. "When to pray to the angels for funding: The seasonality of angel investing in new ventures," Journal of Business Venturing Insights, Elsevier, vol. 7(C), pages 68-76.
    12. Andreana Drencheva & Wee Chan Au, 2023. "Bringing the Family Logic in: From Duality to Plurality in Social Enterprises," Journal of Business Ethics, Springer, vol. 182(1), pages 77-93, January.
    13. Kosmynin, Mikhail & Jack, Sarah L., 2022. "Alternative investing as brokering: The embedding process of a Social Impact Bond model in a local context," Journal of Business Venturing Insights, Elsevier, vol. 17(C).
    14. Wood, Matthew S. & Long, Anna & Artz, Kendall, 2020. "Angel investor network pitch meetings: The pull and push of peer opinion," Business Horizons, Elsevier, vol. 63(4), pages 507-518.
    15. Ding, Zhujun & Au, Kevin & Chiang, Flora, 2015. "Social trust and angel investors' decisions: A multilevel analysis across nations," Journal of Business Venturing, Elsevier, vol. 30(2), pages 307-321.
    16. Per Davidsson & Jan Henrik Gruenhagen, 2021. "Fulfilling the Process Promise: A Review and Agenda for New Venture Creation Process Research," Entrepreneurship Theory and Practice, , vol. 45(5), pages 1083-1118, September.
    17. Cecilia Ficco & Paola Bersía & Cecilia Bressan & Edila Eudemia Herrera-Rodríguez, 2023. "Contribution of Argentinian B Corporations to Sustainable Development Goals: Empirical Analysis Based on Their Practices and Solutions to Socioenvironmental Problems," Sustainability, MDPI, vol. 16(1), pages 1-19, December.
    18. Werner Liebregts & Pourya Darnihamedani & Eric Postma & Martin Atzmueller, 2020. "The promise of social signal processing for research on decision-making in entrepreneurial contexts," Small Business Economics, Springer, vol. 55(3), pages 589-605, October.
    19. Jihye Jeong & Juhee Kim & Hanei Son & Dae-il Nam, 2020. "The Role of Venture Capital Investment in Startups’ Sustainable Growth and Performance: Focusing on Absorptive Capacity and Venture Capitalists’ Reputation," Sustainability, MDPI, vol. 12(8), pages 1-13, April.
    20. Fabiana Gatto & Ilaria Re, 2021. "Circular Bioeconomy Business Models to Overcome the Valley of Death. A Systematic Statistical Analysis of Studies and Projects in Emerging Bio-Based Technologies and Trends Linked to the SME Instrumen," Sustainability, MDPI, vol. 13(4), pages 1-40, February.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:arx:papers:2209.10518. 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: arXiv administrators (email available below). General contact details of provider: http://arxiv.org/ .

    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.