Financial Market Support for Green and Digital Energy Startups: The Role of Venture Capital Expenditures

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

🔬研究者:Provides empirical evidence on the time-lagged effects of VC on green energy startups, useful for further research in entrepreneurial finance and sustainable investment.

🏢実務担当者:Highlights the importance of patient capital and long-term financial support for green energy startups, informing investment strategies.

🏛政策担当者:Suggests that VC policies should consider delayed effects and stage-specific support to effectively foster green energy entrepreneurship.

The accelerating interaction among financial markets, venture capital ecosystems, sustainable finance, and energy transition investment has heightened the strategic importance of green and digital energy startups as drivers of financial innovation, low-carbon technological transformation, and long-term economic competitiveness in European economies. Previous studies within the fields of financial markets, investment management, and entrepreneurial finance provide limited evidence on how venture capital expenditures simultaneously affect both the creation and financing of green and digital energy startups over different temporal horizons, while insufficiently accounting for stage-specific effects, innovation ecosystems, and the role of financial-market support in sustainable investment processes. This study aims to assess how venture capital expenditures influence the creation and financing of green and digital energy startups in European and neighboring economies, with particular attention to delayed effects, funding-stage differences, and national innovation conditions. The empirical analysis uses a balanced panel of 37 countries for 2018–2023 and applies Poisson pseudo-maximum likelihood (PPML) models with country- and year-fixed effects for startup counts, two-way fixed-effects models with Driscoll–Kraay standard errors for funding outcomes, and two-part robustness models for later-stage funding. The contemporaneous PPML results show positive but statistically insignificant effects: a 10-point increase in venture capital expenditures is associated with a 1.09% increase in expected green energy startups and a 0.62% increase in expected digital energy startups. The one-year lagged model shows a significant effect only for green energy startups, where the expected number increases by 1.64%. In comparison, the effect for digital energy startups is 0.75% and insignificant. The strongest evidence appears in the two-year lagged models, where venture capital expenditures are associated with a 2.35% increase in expected green energy startups and a 3.89% increase in expected digital energy startups. Funding models reveal no significant immediate or one-year effects. At the same time, two-part robustness results show that two-year lagged venture capital expenditures increase the odds of later-stage green funding by 77.6% and the amount of such funding by 23.8%. These findings contribute to the literature on financial markets, sustainable finance, entrepreneurial investment, and innovation financing, while also providing practical implications for investment management, venture capital policy, and the development of long-term financial support mechanisms for green and digital energy entrepreneurship in European economies.

• openaire https://doi.org/10.61093/fmir.10(2).1-21.2026first seen 2026-08-04 04:43:42