• Clean Energy Innovation and the Influence
    of Venture Capitalists' Social Capital

    CIES Research Paper 60 | 2020

    Till Fust

    This study contributes to the understanding of the enabling role that venture capitalists can play in bringing new innovative technologies to market, with a focus on clean energy technologies. Applying the structural model introduced by Srensen (2007) that allows to control for a potential sorting bias, I estimate the in influence of venture capital investor's social capital on startups' funding and exit performance, with social capital defi ned as the investors' eigencentrality and constraint within the network of investors. Looking at startups' fi rst venture capital funding rounds in California between 2001 and 2019, this study finds a positive and signi cant in influence of the lead investor's eigencentrality on the funding amount raised and the exit probability of the firm. Furthermore, a less constrained lead investor also increases the chance of the startup's eventual exit. But no di fferentiated eff ect for cleantech startups compared to other industries is found.

  • What Drives Them to Invest in the Sustainable Mobility Transition? Evidence from a Conjoint Experiment on European Investors’ Policy Preferences

    CIES Research Paper 61 | 2020

    Eva Bortolotti

    Substantial private investment is required if public policy objectives aim to increase the market share of Electric Vehicles (EVs) and prevent locking-in emissions-intensive development pathways. To maximize the effectiveness of future policies and successfully attract private capital, policy makers need to gain a better understanding of how investors behave, and of how policy design can drive investments decisions. This paper leverages an adaptive conjoint analysis (ACA) method to investigate the policy preferences of 41 European investors affiliated with different investment institutions. Findings reveal that investors’ characteristics as institution type and size of assets under management affect investors’ preferences over different e-mobility policy attributes. Furthermore, this study shows that behavioral factors, namely investors’ a-priori beliefs on the impacts of climate change and the COVID-19 crisis, play a role in determining investors’ policy preferences. By providing an analysis of investors’ behavior, this research can support policymakers to design more effective policy instruments to attract investments in electric mobility during and after the COVID-19 crisis.