Sustainability in venture capital

Abstract

Sustainability has, for a long time, been the ultimate target for social movements around the world. It has been deemed as a “wicked problem”, a problem which does not have a singular solution. To address this issue, the acceleration of sustainable start-ups is key. Sustainable start-ups or impact ventures are recognized as the fastest way to achieve the sustainable development goals in each country. Although the term, sustainable start-ups has gained recognition over the past years, the inherent need for corporates to gather profits by scaling up and accumulating market share, has hindered the growth of such ventures. Venture capital has always influenced the success of start-ups, from investing in new ventures to providing resources needed to enable a profitable venture. Sustainable venture capital on the other hand, is a more complex solution. Being a less researched area in the field of venture building, sustainable venture capital is new and highly innovative. But there is a lot more research that is required as to how this type of capital can influence the success of sustainable start-ups. This research aims at answering the question: How do sustainable venture capitalists influence the success of sustainable start-ups?