Search Results (36)

Global angel investment and venture capital are key financial drivers supporting the long-term growth of technology companies, and they play a vital role in improving the global science and technology innovation financial system and advancing green and sustainable transformation. This paper uses data on technology-sector companies listed on the A-share market from 2017 to 2025 to construct a multi-period DID model. It empirically examines the impact of angel investment and venture capital on the sustainable development of technology companies and investigates the moderating effect of ESG performance. The study finds that angel investment can significantly enhance the level of sustainable development in technology firms. Mechanism tests indicate that angel investment indirectly empowers sustainable development by attracting and introducing venture capital. The moderating effect shows that strong ESG performance positively reinforces the promotional role of angel investment and venture capital in the sustainable development of technology firms. Heterogeneity analysis reveals that these enhancement and moderating effects are more pronounced in high-tech industries, private enterprises, and asset-light technology firms. These findings provide empirical evidence and policy guidance for governments worldwide to direct venture capital toward supporting science and technology enterprises, help technology firms improve their ESG governance systems, and achieve long-term sustainable operations. Full article

This study provides an exploratory predictive analysis to examine how different dimensions of digital infrastructure—capital market development, digital payment adoption, e-commerce penetration, and market volatility—predict the financial performance metrics of fintech ventures in Egypt. Using panel data from ten fintech ventures listed on the Egyptian Stock Exchange over the period 2017–2023, the research employs Random Forest machine learning algorithms alongside Logistic Regression as a baseline comparator. Feature importance analysis identifies the most significant predictors of profitability across four performance metrics: gross revenue, sales growth, gross margin, and net profit margin. This study employs Random Forest with five-fold cross-validation. Hyperparameters were optimized via grid search, and feature importance scores are reported with cross-validation standard deviations. To address panel structure concerns, we additionally employ leave-one-firm-out cross-validation. All findings reflect predictive associations only; no causal claims are made due to potential reverse causality. Findings show that capital market development emerges as the most important predictor across all profitability metrics, accounting for 45% of feature importance for net profit margin and 42% for gross revenue (mean importance across five folds; SD = 0.07–0.08). Digital payment adoption exhibits a paradoxical dual association—positively associated with revenue and margins through operational efficiency (38% importance for gross margin; SD = 0.08) while negatively associated with sales growth (22% importance; SD = 0.10). Gross online sales show limited predictive efficacy, affecting only gross margin. Market volatility correlates solely with sales growth. Random Forest consistently outperforms Logistic Regression across all models, with accuracy rates ranging from 68% to 76% (compared to a chance level of 50% and a majority-class baseline of 52–58%). Due to the limited sample of 70 firm-year observations, these findings must be interpreted as strictly exploratory and hypothesis-generating; they apply uniquely to publicly listed fintech firms on the Egyptian Stock Exchange and cannot be generalized to private, early-stage, or unlisted fintech startups without further empirical validation. Full article

This study examines the effectiveness of government support mechanisms in fostering venture capital (VC) ecosystems in emerging economies, with a particular focus on Kazakhstan. While venture capital is widely recognized as a key driver of innovation, entrepreneurship, and economic diversification, many developing countries face persistent structural barriers, including underdeveloped financial markets, limited private investment, and regulatory inefficiencies. To address these challenges, this research adopts a multi-source qualitative design, combining a systematic literature review with semi-structured interviews conducted with venture capital experts and practitioners. The analysis evaluates key policy instruments—such as co-investment schemes, tax incentives, startup accelerators, and regulatory reforms—and assesses their role in shaping VC activity. The findings indicate that although Kazakhstan has made significant progress in establishing institutional support for venture capital, critical constraints remain, including bureaucratic complexity, investor risk aversion, and limited exit opportunities. The study contributes to the literature by integrating global best practices with context-specific evidence, offering policy-relevant insights into how governments can more effectively design and implement interventions to strengthen venture capital ecosystems in developing economies. Full article

Drawing on institutional theory and agency theory, this study examines whether venture capital (VC) and private equity (PE) ownership acts as a complement to, or substitute for, investor protection in shaping equity financing, debt financing, and leverage decisions in high-tech entrepreneurial firms. The analysis is based on a panel dataset of 403 high-tech entrepreneurial firms from 11 European countries over the period 2009–2013. To address potential endogeneity and reverse causality between external finance and VC/PE investment, the study employs two-stage least squares (2SLS) regression models using an instrumental-variable approach. The results provide tentative evidence that VC/PE ownership is associated with stronger debt-related financing outcomes, particularly leverage, in countries characterised by weaker investor protection, suggesting a possible substitutive relationship in debt-related financing outcomes. However, these findings should be interpreted cautiously given the limitations associated with the instrumental-variable strategy. The study contributes to the literature on entrepreneurial finance, corporate governance and law and finance by showing how firm-level governance mechanisms interact with national institutional settings in shaping financing decisions. Full article

Given the urgent need for corporate green transformation in the context of global climate governance, the sustainable development goals, and China’s dual carbon goals, this study examines the spillover effects of venture capital networks formed through common shareholder ties on green technology innovation from a complex network perspective. Based on regression analysis of panel data from Chinese A-share STAR and ChiNext Market listed companies between 2015 and 2023, we find the following: (1) Within venture capital networks, enterprises with higher centrality and structural hole positions exhibit more significant green technology innovation performance. (2) This facilitation effect varies across firm types. Private enterprises, foreign-invested enterprises and enterprises with weaker ESG performance rely more heavily on network advantage for innovation. (3) The mechanism analysis shows that occupying advantageous positions in venture capital networks enables firms to increase R&D personnel and R&D expenditure, thereby strengthening their ability to absorb external knowledge and transform innovation resources, which further enhances green technology innovation output. Full article

Focusing on the role of government industrial funds in bridging the equity gap, in this paper, we examine how the establishment of government industrial funds (GIFs) affects enterprise innovation and the underlying mechanism of the guiding and synergistic effects on social capital. By conducting an empirical study employing a fixed-effect model comprising panel data of Chinese industrial enterprises covering the recent period of 2014 to 2024, we found that GIFs play a positive role in promoting local enterprise innovation. We also provide supporting evidence that China’s GIFs are effectively designed in bridging the equity gap, which hinders innovation, and that they are productive in alleviating the structural friction of the venture capital market. The findings of this study also offer some new evidence regarding the influence of fund-level characteristics on the innovation-promoting effect of GIFs, which has not been previously explored for the Chinese context. Our research also reveals the “seeding” role and “patient capital effect” of GIFs, which guide social capital to gather towards early-stage and long-term funds, improve the structural supply shortage in the local venture capital market, and thereby alleviate the financing gap for corporate innovation. The focus on early-stage and long-term capital is an innovative perspective of this paper. Our results also indicate that private capital, as an important participant in government industrial funds, can positively moderate the innovation-promoting effect of government industrial funds. The impact of funds’ internal governance mechanisms on their innovation-promoting effect is also one of the unique contributions of this paper. Full article

This study examines the impact of technological capabilities across industries on venture capital (VC) inflows. Technological capabilities were proxied by industry-level patent applications and R&D expenditures. VC inflows were derived from annual investment statistics published by the Ministry of SMEs and Startups and the Korea Venture Capital Association. Multiple regression analysis shows that industries with more patent applications are more likely to attract venture investments. Moreover, the relationships among patents, R&D, and venture inflows vary significantly across industries. In the biomedical industry, VC inflows show strong positive correlations with patent applications (r = 0.762, p < 0.001) and R&D investment (r = 0.900, p < 0.001). In contrast, in the information and communication technology manufacturing sector, the association between patent applications and VC inflows is not statistically significant (R² = 0.002, p > 0.05), implying that the conversion efficiency of technological outputs into investment differs according to the industrial structure. This study provides evidence of how technological development translates into commercialization and private investment. The findings contribute to a nuanced understanding of success factors in technology-based startups by industry and may serve as a foundation for the formulation of effective policy measures and investment strategies to promote private capital inflows. Full article

Venture capital (VC) is vital for innovation and economic growth, providing capital and networks to early-stage firms. While research shows a generally positive impact, challenges and failures are often overlooked, potentially creating a skewed perception of success. A review of 72 articles reveals that VC investment is concentrated in developed nations and a few emerging economies, highlighting uneven growth and the need for government interventions to promote a more balanced landscape. The review emphasises the critical importance of examining contextual factors, such as institutional frameworks and technological infrastructure, in assessing the effectiveness of venture capital in various emerging economies. This systematic review offers several key contributions with practical implications for policymakers, private investors, and the business community. First, it provides evidence-based insights into the effectiveness of VC in fostering innovation and economic growth, informing the design of targeted policies to support SME development. Second, it offers a nuanced understanding of the factors that influence the success of VC-backed SMEs in emerging economies, enabling more informed investment decisions. Third, building upon existing research, this study asserts its contribution by providing valuable, practical guidance for entrepreneurs. It offers a deeper understanding of the VC landscape, outlining both its potential benefits and inherent challenges. This enables entrepreneurs to develop more informed strategies for engaging with VC funding and maximising its impact on their businesses. The study also acknowledges limitations related to database restrictions, language bias, and limitations in search terms, suggesting avenues for future research to contribute to shaping venture capital investments and overall economic growth. Full article

Green hydrogen is gaining global attention as a zero-carbon energy carrier with the potential to drive sustainable energy transitions, particularly in regions facing rising fossil fuel costs and resource depletion. In sub-Saharan Africa, financing mechanisms and structured off-take agreements are critical to attracting investment across the green hydrogen value chain, from advisory and pilot stages to full-scale deployment. While substantial funding is required to support a green economic transition, success will depend on the effective mobilization of capital through smart public policies and innovative financial instruments. This review evaluates financing mechanisms relevant to sub-Saharan Africa, including green bonds, public–private partnerships, foreign direct investment, venture capital, grants and loans, multilateral and bilateral funding, and government subsidies. Despite their potential, current capital flows remain insufficient and must be significantly scaled up to meet green energy transition targets. This study employs a mixed-methods approach, drawing on primary data from utility firms under the H₂Atlas-Africa project and secondary data from international organizations and the peer-reviewed literature. The analysis identifies that transitioning toward Net-Zero emissions economies through hydrogen development in sub-Saharan Africa presents both significant opportunities and measurable risks. Specifically, the results indicate an estimated investment risk factor of 35%, reflecting potential challenges such as financing, infrastructure, and policy readiness. Nevertheless, the findings underscore that green hydrogen is a viable alternative to fossil fuels in sub-Saharan Africa, particularly if supported by targeted financing strategies and robust policy frameworks. This study offers practical insights for policymakers, financial institutions, and development partners seeking to structure bankable projects and accelerate green hydrogen adoption across the region. Full article

Specialized and special new “little giant” enterprises are characterized by specialization, refinement, uniqueness, and innovation. They have relatively strong innovation capabilities and enterprise vitality. However, they also face problems such as high innovation costs, long investment recovery cycles, and high risks of investment returns, which lead to information asymmetry and financing difficulties. Government venture capital is a policy fund provided by the government and established with the participation of local governments, financial institutions, and private capital. They can utilize fiscal policies to attract market funds and support the development of key industries. Therefore, in this study, the first through sixth batches of specialized and special new “little giant” enterprises listed on the A-share and New Third Board from 2013 to 2023 were taken as samples, and their investment behavior and investment effects were empirically studied using the multiple linear regression method. The investment behavior of government venture capital tends to target strategic emerging industries. The intervention of government venture capital can enhance the innovation of “little giant” enterprises and has an impact through the intermediary mechanism of R&D investment. This paper draws conclusions and puts forward relevant policy suggestions for supporting the development of “little giant” enterprises. Full article

Startups in the clean energy and environmental technology (CEET) sector can develop sustainable innovations, but mobilizing private finance has been difficult. As the venture capital (VC) investment model was found to be not well-suited for the CEET startups, diverse types of investors have received more attention. However, since previous studies have been dominated by a VC-centric perspective in the US and have overlooked collaborative relationships, the roles of various CEET investors have not been systematically analyzed. This study aims to analyze the diverse investors in the CEET investor network formed through co-investment syndication, using Japan as an underexplored regional context. Based on Japan’s comprehensive data from 2008 to 2022, this study examines the evolution, structure, and communities of the network. The analysis identified the development stages of the investor network: the formation stage (2008–2012), the expansion and diversification stage (2013–2017), and the stable growth stage (2018–2022). The results confirmed the strong influence of VCs, while a community analysis suggested the bridging role of governmental venture capital. The findings based on the CEET investor network contribute to expanding both the theoretical understanding and practical implications for overcoming the financing difficulties of CEET startups to address the climate change crisis. Full article

Using data from the Qingsike Private Equity Database, in this paper, we systematically examine how government policy-guiding funds impacted regional economic development in China from 2010 to 2021. An empirical analysis confirms that government-guided funds have a significant positive effect on regional economic growth, particularly in less affluent areas. Additionally, we found that the level of venture capital marketization and industrial structural upgrading mediate the relationship between policy-guiding funds and regional economic growth. These findings suggest that government policy-guiding funds foster regional economic advancement by enhancing market dynamism in the venture capital sector and optimizing industrial structures. A further analysis of moderating effects reveals that the effectiveness of policy-guiding funds is significantly influenced by government intervention and reginal marketization levels. In highly marketized regions, government-guided funds demonstrate a stronger economic stimulus effect. However, excessive government intervention can disrupt efficient market operations, thereby weakening the positive impact of the funds. These findings underscore the importance for policymakers to design and implement policy-guiding funds while carefully balancing the interplay between marketization and government intervention to achieve optimal outcomes. Full article

We studied various fund investing options in the circular economy sector. We found that most circular economy mutual funds and exchange-traded funds charge higher fees and take higher risks than their benchmarks. However, they appear to have underperformed their benchmarks during their short existence so far. Most of these funds are rated as sustainable and low-carbon funds. Investors keen on circular economy startups may consider private equity/venture capital funds, but most of these funds are exclusive to institutional and accredited investors. Full article

In this study, we explore the inter-dynamics among holding periods, return multiples, fund types, and exit routes of different VC and PE investments in the emerging economy context of India. We employ data spanning from January 2004 to March 2021, and our results indicate that there is a negative association between the holding period and return. The results also indicate that the average holding periods for India-dedicated and foreign funds are not significantly different. Furthermore, the results show that India-dedicated funds outperform foreign funds significantly in generating returns. Finally, the findings suggest that all exit routes can potentially yield similar results, contrary to the prevailing belief that certain exit routes guarantee superior returns. These findings provide useful insights for a spectrum of stakeholders, including entrepreneurs, practitioners, investors, financial analysts, and policymakers. Full article

This study aims to develop a framework by incorporating well-proven project management techniques to help startup owners effectively set up ventures and secure early-stage financing. Startups not only open ways for innovative and updated technologies in the markets but also bring employment opportunities in a country that eventually increase productivity and the per capita income of a country. Despite all the benefits, the success rate of startups is meager, especially in developing countries, due to ineffective management and vague business plans. Therefore, this study aims to facilitate entrepreneurs using well-proven project management techniques from the literature and devise a new framework applied to a business case, as discussed in this paper. This study presents an approach to project management techniques for smartphone app-based startups. This study utilizes the fuzzy PERT (FPERT) for the best completion time and budget estimates. Experts’ opinions from eight private limited companies have been analyzed using FPERT. The critical path method (CPM) is also used to schedule activities. Finally, a techno-economic analysis is also performed to show the growth potential of such a startup, e-Karsaz. This study aims to help startups secure early-stage financing. Tech-based business ideas need to be commercialized in developing countries like Pakistan. There is a need to show long-term profitability to make an idea stand out among others and secure early-stage financing. The scope of project management techniques is confined to construction-based projects. The results show that it would take around 692 days for the e-Karsaz startup to become fully operational, with the capital budget estimated at around PKR 1.3 billion. The techno-economic analysis shows the project is economically viable with an internal rate of return (IRR) equal to 92 percent and a benefit-to-cost ratio (BCR) equal to 10. The sensitivity analysis, including five scenarios of weighted average cost of capital (WACC), shows that the project remains economically viable even if the required rate of return goes over 20 percent. This study is helpful for startups to make time and budget estimates and to show the growth potential to secure early-stage financing. Full article