Mainly focusing on the real-options value of CVC investments, existing research in strategy and entrepreneurship has underscored the role of CVC investments as an essential mechanism through which corporate investors can engage in early-stage technology experimentation. Extending this line of research, we propose that CVC investments can also attract attention toward the invested ventures, thereby increasing the likelihood of these ventures being noticed and eventually acquired by external entities. Moreover, we elucidate that this effect is not universal but contingent upon the tie strength between the corporate investor and the venture. The stronger the tie strength, the less likely the venture will be acquired by external entities. Our empirical analysis employs a comprehensive dataset tracking 221,204 triads of acquirers, CVCs, and ventures within the high-tech industries from 1980 to 2016. The findings substantiate our hypotheses, shedding light on the interplay between CVC investments and acquisitions, and the intricate dynamics of corporate strategy.
