Corporate Venture Capital (CVC) Investment Timing, Strategic Misalignment, and CVC Value Addition

This study investigates the relationship between CVC investment timing and CVC value addition. Drawing on the path dependence theory, we theorize that timing of CVC investment influences the extent of strategic misalignment between CVCs and ventures, which would, in turn, affects the extent of CVC value addition. We maintain that there is a U-shape relationship between CVC investment timing and CVC value addition. Results of empirical analysis with data of 450 US-based biotechnology ventures corroborate the main thesis of the current study that CVCs’ investment timing plays an important role in influencing performance and behavioral outcomes of CVC value addition.