This study highlights venture capital’s crucial role in accelerating enterprise digitalization through enhanced financing , management efficiency , innovation , and market incentives . VC firms' involvement in Digital Innovation Governance (DIG) is shaped by their financial focus , fiduciary duties , and alignment with LPs' expectations . Engagement in DIG varies by investment phase and startup maturity , with early-stage investments often less focused on governance.

It provides valuable insights into how financing decisions can impact ethical and governance practices in technology innovation. This highlights opportunities to mitigate risks and enhance both societal and business benefits .