Why do they do it? Corporate venture capital investments in cleantech startups

Sustainable startups commercializing a clean technology provide an opportunity for a greener future. Despite their high investment risks, cleantech startups increasingly attract corporate venture capital. This paper explores which companies invest venture capital in cleantech startups and why they do it. It includes 26 cases of established companies that invested in cleantech startups founded in Norway between 1999 and 2012. This study broadens the scope of corporate venture capital research. The findings show that corporate venture capital investors are more heterogeneous than assumed in the literature thus far. Firstly, it finds that small and medium enterprises are active corporate venture capital investors. Secondly, it reveals that the motivations to invest are more diverse than hitherto assumed. The study adds to the sustainability literature by empirically revealing that large companies invest corporate venture capital to promote corporate greening to maintain competitiveness.