VC’s Impact on Performance: Tech vs. Non-Tech Enterprises

Chongqing Technology and Business University, Chongqing, China

^* Corresponding author: huangsipeng@ctbu.edu.cn

Abstract

This study selects Semiconductor Manufacturing International Corporation (SMIC), a technology-intensive enterprise, and Yongsi Electronics, a non-technology-intensive enterprise, as representative cases to examine the impact of venture capital (VC) on firms with differing levels of technological intensity. The findings reveal that VC exerts a positive influence on both types of enterprises: SMIC experiences breakthroughs in technology, increased patent filings and R&D investment, and enhanced competitiveness; while Yongsi Electronics benefits from growth in revenue and profits, customer base expansion, and the realization of various technological outcomes. The two companies differ in their technological focus and the nature of VC involvement: SMIC, with its high technological threshold, attracts limited VC in the later stages, relying more on diversified funding sources; Yongsi Electronics, characterized by lower technological intensity, is highly dependent on VC during its early development. This study highlights key limitations and offers practical recommendations, providing valuable references for enterprises and policy formulation.