Families in Corporate Venture Capital
46 Pages Posted: 12 May 2021 Last revised: 28 Oct 2022
Date Written: May 16, 2021
We show that families are an engine of venturing activities: one third of all corporate venture capital (CVC) deals in the US from 2000 to 2017 originated from family firms. Family firms have a distinct venturing style: they syndicate more often, join larger syndicates, and make closer deals (geography- and industry-wise), especially when they are led by a family CEO. These features map into performance results: family CVC-backed ventures exhibit a higher likelihood of successful exit, better marker performance and more valuable innovation. At the level of the parent organization, CVC creates more shareholder value for family firms than non- family firms.
Keywords: Corporate venture capital; family ownership; investment; performance
JEL Classification: G24; G32; O32
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