European Venture Capital and Corporate Venture Capital Investments impact on Economics Performance

Abstract

The significance of Venture Capital (VC) and Corporate Venture Capital (CVC) as potent funding sources has surged globally in recent years, with Europe being a prominent market. This study focuses on the differential impacts of VC and CVC investments made by European firms on the economic performance of companies worldwide. Our study reveals unexpected findings in comparison to previous studies: a significant negative correlation between CVC investments and the companies’ economic performance. However, an interaction effect with firm size, represented by total assets, shows that larger companies experience a positive relationship between CVC investment and financial performance. Our research, therefore, underlines the nuanced roles and impacts of European VC and CVC investments on a global Scale. These insights are pertinent for a broad audience, including investors, policymakers, entrepreneurs, and academics, looking to navigate the intricate landscape of VC and CVC funding.