ABSTRACT This paper investigates the role of Venture Capital (VC) in the likelihood of delisting via mergers and acquisitions (M&A) for European companies listed in the 2004–2014 period, till 2020. Takeovers of listed companies are generally associated with underperformance, suggesting a need for a change in corporate control. In contrast, we show that VC-backed listed companies are more likely to be acquired when they exhibit higher growth rates compared to their peers. Moreover, this effect is driven by companies backed by low-reputation VCs. These VCs are known to rush their portfolio ventures to IPO and to have a limited post-IPO involvement. These conditions, combined with strong growth, may attract acquirers who perceive a need for change in corporate control. Conversely, we find no evidence of an increased likelihood of delisting by M&A in companies backed by highly reputed VCs, which tend to remain independent.

ABSTRACT Based on a conceptualisation of the entrepreneurial process, we take a thought examination approach to examine current changes in the role and functioning of the entrepreneurial risk capital market, which we understand in the broad sense of all agents (including business angels, equity crowdfunding investors, accelerators, corporate venture capital, government (public sector) venture capital and institutional venture capital) involved in the provision of risk capital to entrepreneurial ventures. Specifically, we address the following question: What are the implications of the pattern of evolution of the entrepreneurial risk capital market for the development and cultural, social and economic impact of the entrepreneurial process? Based on an analysis of current trends in the market, the spatialities and temporalities of which are being transformed as new investors enter the market, new (digital) technologies are introduced and it becomes increasingly internationalised, we identify five issues shaping the development of the risk capital market – democratisation, compartmentalisation, internationalisation, financialization and mythification. We conclude that “entrepreneurial risk capital” may be more a constraint on rather than an enabler of the entrepreneurship process.

ABSTRACT How does corporate venture capital (CVC) drive business model innovation (BMI)? This paper provides a comprehensive overview of past studies at the intersection of CVC and BMI for both scholars and practitioners. Based on a sample of 52 studies published between 1990 and 2025, we identify seven key dimensions along which CVC influences BMI: (1) corporate characteristics, (2) CVC program characteristics, (3) interorganizational collaboration networks, (4) interorganizational knowledge and resource exchange, (5) dynamic capability development, (6) innovation of the value proposition, and (7) innovation of the cost model. Additionally, we map the implications of CVC for BMI across different corporate and CVC program characteristics. Our analysis reveals critical research gaps, particularly concerning non-customer-facing innovation outcomes and differences across alternative CVC program and corporate characteristics. This highlights a prevailing emphasis on technological and product innovation in literature, often overlooking the contextual diversity in CVC-driven innovation.

ABSTRACT The French private equity ecosystem is characterised by the presence of Bpifrance, a state investment bank (SIB) which has structured and streamlined the sector since its creation in 2013. On the demand side, this research questions the influence of Bpifrance, as a direct public investor with sustainable venture capital objectives for environmental and social public good. France’s venture capital market is examined on the length of time between early-stage venture capital funding rounds and the ability of funded ventures, including those with deep tech and sustainable development goals (SDGs), to progress along the stages of the finance escalator. To answer this question, data was collected from Dealroom, a platform that provides investment information on a large number of startups in different countries over their lifecycle. An event history analysis is conducted on a sample of 3741 French ventures that raised their first seed funds between 1990 and 2023. The results confirm the impact of Bpifrance and the various public programmes that accompanied it on the structuring of the French venture capital ecosystem. On the other hand, the results question the ability of Bpifrance to support start-up companies with disruptive social and/or environmental innovations that require patient capital and significant risk-taking.

ABSTRACT Professional esports teams increasingly rely on venture capital (VC) to fund their growth. However, the structural dynamics of this financing model and its financial viability remain underexplored. Anchored in signaling theory, this qualitative study based on seven interviews with esports team representatives and esports investors investigates the structuration of fundraising deals within professional esports teams, analyzing its stages and allocation of funds. It highlights that VC funding is often preceded by early-stage financing, such as business angels and Series A or B rounds, serving as legitimacy signals and used as a cyclical resource for specific projects like international expansion or player acquisitions. Interviews with team executives indicate that fundraising is critical for survival and project acceleration but does not lead to a viable income stream. Challenges include esports’ fluctuating market appeal, limited investor understanding of the industry, and difficulties in monetization. However, emerging opportunities lie in leveraging fan communities, exploring cryptocurrency integration, and artificial intelligence applications. The findings deepen the understanding of VC structuration in esports, identifying adaptability and balancing current growth with financial viability as key success factors. Offering practical insights, this study underscores the need for innovative, viable business models to navigate the complexities of the esports ecosystem.

ABSTRACT Crowdfunding offers a promising avenue to democratize finance, yet persistent biases continue to constrain minority entrepreneurs. This study examines ethnic women entrepreneurs, a group considered underdogs because overlapping gender and ethnic disadvantages create distinct legitimacy deficits in fundraising. Using a novel dataset of 18,123 U.S. Kickstarter campaigns, we analyze how underdog status shapes the effectiveness of internal signals (e.g., education, campaign commitment) and external signals (e.g., Staff Pick endorsements). We address selection bias with a Heckman two-stage procedure and entropy balancing. Results show ethnic women entrepreneurs face disadvantages in attracting local backers, while external signals strongly enhance credibility and fundraising outcomes. Internal signals are more effective with foreign backers, highlighting that the value of signals depends on both entrepreneur identity and backer audience. Signaling thus functions as both an economic and symbolic tool, enabling underdogs to challenge stereotypes and reclaim legitimacy. Ethnic women entrepreneurs can strategically leverage transnational networks to overcome local disadvantages. By integrating insights from signaling theory, underdog strategy, and ethnic entrepreneurship, this study advances understanding of how marginalized entrepreneurs navigate structural barriers in digital finance and offers guidance for more inclusive crowdfunding models.

ABSTRACT This study examines whether large language models (LLMs) can effectively assist investors in incorporating venture capital (VC) investments into their portfolios. Using 48 hypothetical investor profiles that vary in VC focus, investor status, investment horizon, risk tolerance, and home country, we elicit portfolio recommendations from four reasoning LLMs. We find that LLMs incorporate VC preferences by increasing allocations to VC-like investment products and decreasing allocations to public equity and fixed income. LLMs recommend larger VC allocations to accredited investors than to retail investors. VC-focused prompts generate portfolios that mirror the more aggressive risk – return characteristics of VC investments. These portfolios exhibit higher exposure to the Fama – French size factor, lower exposure to the investment factor, higher historical excess returns and alphas, and additional risk that is primarily systematic. Overall, our results suggest that LLMs can incorporate nuanced investment objectives, potentially assisting investors with VC portfolio construction and broadening retail investors’ access to VC-style investments.

ABSTRACT This study assesses business angels’ approaches to sustainability impact assessments through a principal–agent lens. Interviews with 20 angels shed light on different frameworks and tools, as well as the drivers, challenges, and temporal aspects underlying angels’ integration of sustainability impact assessments. While some angels implement systematic sustainability impact assessments throughout the entire investment process, others consciously decide against adopting such approaches and rely on their gut feeling. A third group acknowledges the need for more applicable tools but is hindered by data and resource limitations, as well as a lack of suitable methodologies. Based on extant literature and the empirical findings, a framework for angel sustainability impact assessment is presented. These findings further support the importance of sustainability knowledge for investors. Principal–agent theory is modified to account for context- and time-specificities. Recommendations for future research and practice are made as well as contributions to the green entrepreneurial finance literature.

ABSTRACT Start-ups that are members of accelerator programs gain the experience necessary for further development and selling the solutions offered on the market, and most importantly, they establish relationships with corporations. The established relationships represent the starting point for further market negotiations concerning start-ups’ need to carry out commercial sales of products and services. This paper aims to explore the preferred forms of collaboration between start-ups and corporations once the acceleration phase is over. There are four basic forms of interaction in the post-acceleration phase: 1) purchase of services and products, 2) licensing, 3) venture building, 4) acquisition of/investment in the start-up. Next, the attitudes of start-ups towards each of the above-mentioned forms of collaboration were examined, and it was verified whether these attitudes change depending on the start-up characteristics. The characteristics encompassed (a) the start-up development phase, (b) the moment of establishing collaboration with the corporation, (c) the length of market operation, (d) the average level of monthly revenues, (e) international experience of key personnel. The survey was carried out on a population of 101 start-ups that collaborated with corporations by participating in acceleration programs managed by start-up accelerators.