The Impact of Corporate Venture Capital on Enterprise Value in China

Abstract

Purpose – Chinese corporate venture capital has been particularly active in the Internet sector, with Tencent gradually expanding its business ecosystem through corporate venture capital activities. Therefore, this paper chooses Tencent as the case study object to discuss the influence of venture capital on the value creation of the platform-type business ecosystem, hoping to provide reference for China’s corporate venture capital practices. Design/Methodology/Approach – This paper takes Tencent’s corporate venture capital investment data from 2011 to 2022 as the research object, and uses case analysis, financial index analysis, and event analysis to demonstrate whether there is influence between corporate venture capital and enterprise value. Findings – Through the analysis of the investment motivation, investment mode, and investment projects of Tencent Group’s venture capital, the research results show that corporate venture capital can indeed have an impact on the strategic and financial values of enterprises. Research Implications – There are few studies on the venture capital activities of Internet platform enterprises in the existing literature. Based on two dimensions of strategic and financial value, this paper explores the value creation function of venture capital in the platform business ecosystem, and the research results have reference significance for the venture capital activities of other enterprises.