GVC-supported firms outperform those backed by PVCs in R&D investment , ROA , Tobin's Q , and CSR metrics . They also attract more subsequent venture capital and achieve higher one-day returns at IPOs . According to Jiu-jin Li et al., GVC-backed firms enhance CSR efforts more significantly than those supported by PVCs or FCVs, attract more investment, and achieve higher first-day returns on their IPOs.

This paper is crucial as it highlights the superior performance and policy efficacy of government venture capital (GVC) funds in supporting entrepreneurial ventures. It shows that GVC-backed firms excel in research and development , exhibit better financial metrics like Return on Assets (ROA) and Tobin's Q , and have stronger corporate social responsibility (CSR) efforts. Additionally, these firms attract more follow-on venture capital and achieve higher IPO returns on their first trading day. Understanding these advantages can help investors and policymakers refine support strategies and funding structures to boost entrepreneurial success and social impact.