The misalignment of venture capital and cleantechs

: an empirical analysis of how the sector’s dynamics shape emerging funding paradigms

Abstract

This dissertation examines the alignment of Venture Capital investment methods with the operational realities of cleantech startups, characterized by prolonged development cycles, high capital necessity, and complex exit scenarios. The study analyzes the impact Venture Capital, specifically looking at VC funds and Corporate Venture Capital funds, and ESG score on valuation, realized financial returns, and exit probability during the Seed, Series A and Series B funding rounds. A stratified worldwide sample of 150 cleantech companies from the Cleantech Group Database was used to create a new Dataset that quantifies ESG performance, valuation, and returns. Results indicate that CVC involvement substantially elevates valuation premiums, acting as a reliable quality indicator; however is associated with diminished realized returns. Extended funding durations diminish returns and the likelihood of successful exits. The findings emphasize a structural misalignment between established practices in Venture Capital models and the reality of cleantech startups, highlighting the significance of investor type, capital structure, and strategic orientation for this prominent segment. The dissertation offers practical insights for investors and governments on harmonizing financial and sustainability goals to effectively promote cleantech growth.

Date of Award	15 Oct 2025
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Fátima Shuwaikh (Supervisor)