"CVC investments create high values and are important sources of finance for the development of innovative technology startups."

Venture capital and corporate venturing not only provide capital, but also specialised advice, human resources, technological capital and monitoring. Thus, one could imagine that a match between technology startups and these investors can create value for both sides, besides social welfare gain through technology development and diffusion.

Moreover, the extent of value creation could be higher when the quality of match is better – when the quality of startups and the volume of funding is higher. Despite this, and like…