Graduation Year


Date of Submission


Document Type

Campus Only Senior Thesis

Degree Name

Bachelor of Arts



Reader 1

Professor Hughson

Rights Information

2022 Michal H Bachar


This paper presents evidence that portfolio companies backed by corporate venture capital (CVC) firms have higher Tobin’s Q values than companies backed by independent venture capital (IVC) firms on their IPO date. Using a nearest-neighbor matching implementation of the propensity score matching approach to match CVC and IVC-backed companies, I find that the difference in valuation is robust to varying timeframes of IPOs and the prestige levels of individual VC firms. I argue that CVC-backing may serve as a positive signal for investors but recognize that the signal has limited utility since the difference in valuation is influenced by variable portfolio company characteristics.

This thesis is restricted to the Claremont Colleges current faculty, students, and staff.