CVC as a Booster for the Financial Performance of New Ventures? The Moderating Role of Experience

New venture financing and the resulting cooperation between investors and new ventures is one key issue of entrepreneurship research. Corporate venture capital (CVC), as one of the financing and cooperation forms, gained significant relevance within the last years. CVC is a minority equity investment of established firms in new ventures. Scholars increasingly investigate the relationship between CVC-investor involvement in the business of new ventures and the resulting outcomes. However, only a few scholars analyze the impact on the financial performance of new ventures and come to contradictory results. Addressing this contradiction is crucial for new ventures, since they have limited resources and rely on guidance regarding their partner choice to secure their survival and success. Moreover, research requires a better understanding of the effect of contextual factors – which were mostly neglected in prior studies – to provide transparency for new ventures on how to optimize the effect of CVC. We analyze a panel dataset of 11,895 new ventures over the time-period between 1990-2019. We find a positive relationship between the involvement of CVC-investors and the financial performance of new ventures. This positive relationship is strengthened by a high-level of investor experience as well as a low-level of experience within new ventures.