926: Impact of Social Venture Capital on Deal and Post-Funding Financial Outcomes of Social Ventures (16477)

Sunday, August 11, 2024

15:00 – 16:30 CT (GMT-5/UTC-5)

Location: Hyatt: Grand Hall L

Session Number: 926
Paper Session
Orientation: Research
Shareable link: https://cdmcd.co/bRp4RJ

Author(s)

JS

Jagriti Srivastava

Indian Institute of Management Amritsar
SK

Sai Chittaranjan Kalubandi

Indian Institute of Management, Bangalore, India
BG

Balagopal Gopalakrishnan

Indian Institute of Management, Ahmedabad
LL

Ludvig Levasseur

Indian Institute of Management, Bangalore, India
TA

Thomas Houston Allison

Texas Christian U., United States
JS

Jeremy Collin Short

U. of North Texas, United States

In this paper, we find that a shared focus on commercial returns and social welfare leads to higher funding and valuation in Social Venture Capital (SVC) deals. We also find that (1) a domestic market focus of the SVC firm plays a positive moderating role on deal valuation, (2) the growth stage of the investee plays a positive moderating role on funding and deal valuation, and (3) VC syndicates have a negative impact on the relationships between SVC and funding and deal valuation. Overall, SVC has a positive and significant effect on investee’s post-funding financial performance.

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