Does ESG Management Facilitate Venture Firms' Fundraising?

Unofficial AI-generated summary based on the public title and abstract. Not an official translation.

🔬研究者:Researchers can leverage the empirical findings on heterogeneous effects of ESG dimensions on VC investment, especially the interaction with industry type (environmental vs. non-environmental).

🏢実務担当者:Venture firms can focus on social and governance practices to attract investment, while environmental firms should differentiate their E signals beyond industry norms.

🏛政策担当者:Policymakers should consider supporting ESG disclosure, certification programs, stock option advisory, and IP capability-building for ventures to enhance the investment ecosystem.

This study empirically examines the effect of environmental, social, and governance(ESG) management on venture capital investment using data from the 2023 Venture Business Survey. The findings can be summarized as follows. First, firm sales and firm age exhibit a consistent negative association with investment attraction. This result suggests that as firms grow and accumulate internal resources, their reliance on external capital decreases, thereby reducing the necessity for external investment. Second, firm size, measured by the number of employees, and the extent of intellectual property holdings show a consistent positive association with investment attraction. Specifically, firms with larger workforces and stronger technological asset bases are more likely to attract external investment and to secure larger investment amounts. Third, ESG activities in the social(S) dimension and the adoption of stock option schemes as a governance(G) mechanism are identified as key determinants of investment attraction. Fourth, the standalone effect of the environmental(E) dimension is limited, and the influence of ESG activities is attenuated among firms operating in environmental industries. This pattern indicates that, because environmental firms inherently embed environmentally oriented attributes in their core business activities, ESG initiatives convey less differentiated signals to investors. The robustness of these main findings is further confirmed through additional robustness checks. This study suggests that venture firms need to strategically manage non-financial factors, including ESG practices, to enhance their access to external investment. From a policy perspective, the findings underscore the importance of fostering an investment-friendly ecosystem through measures such as support for ESG disclosure and certification, advisory services for stock option design, and capability-building programs centered on technology and intellectual property.

• semanticscholar https://doi.org/10.48206/kceba.2026.10.1.79first seen 2026-07-18 08:26:12