The Effect of Venture Capital Backing on Companies’ Subsequent Lobbying Efforts

We explore non-market strategies of venture capital backed companies. Based on the resource dependence perspective, we examine how venture capital backing influences companies’ lobbying investments. We find that on average, venture capital backing negatively affects companies’ lobbying investments. However, we also find that R&D investments moderates this relationship and companies increase their lobbying investments as they invest more on R&D. Our results provide insights for the research on venture capital backing and non-market strategies.