Publication Type

PhD Dissertation

Version

publishedVersion

Publication Date

3-2025

Abstract

China’s biotechnology sector has undergone rapid evolution, driven by government policy, capital market reform, and growing global demand for pharmaceutical innovation. Venture capitalists (VCs) have played an increasingly pivotal role not only as financiers but also as strategic partners offering value-added services (VAS). These interventions include operational mentorship, regulatory navigation, talent pipeline facilitation, and strategic repositioning. However, the extent to which such non-financial support influences financing outcomes across startup development stages remains underexplored—particularly in the context of China's unique institutional and industrial environment.

This dissertation examines how VC post-investment interventions affect the financing success of biotech startups in China. Drawing on a mixed-methods research design, the study integrates two distinct yet complementary components. Study 1, a qualitative exploration based on 30 semi-structured interviews with VC professionals and biotech founders, identifies four key dimensions of VC value creation: resource foundation, supervision balance, strategic alignment, and enabling conditions for financing. Study 2, a quantitative analysis of survey responses from 143 stakeholders, employs multivariate regression to test the impact of VC involvement and specialization across different funding stages. The results reveal that early-stage companies benefit from operational and human capital support, while mid-to-late-stage firms require more strategic and governance-focused interventions. The intensity and relevance of VC involvement are shown to moderate the relationship between startup capabilities and financing success.

Findings confirm that VC specialization significantly enhances startup valuation growth and syndication quality in post-Series A rounds, while over-involvement may hinder autonomy and reduce subsequent financing performance. The study also highlights the moderating role of external conditions—such as market sentiment and regulatory shifts—in shaping VC strategies and startup outcomes.

By extending theoretical frameworks including the Resource-Based View, Agency Theory, Signaling Theory, and Certification Theory, this research contributes to the academic understanding of venture capital’s multi-dimensional influence on high-risk, innovation-driven industries. It offers practical implications for VC practitioners, biotech entrepreneurs, and policymakers seeking to optimize capital efficiency and innovation outcomes. In doing so, it builds a stage-sensitive, sector-specific model of VC intervention tailored for China’s rapidly maturing biotech ecosystem.

Keywords

Venture Capital, Value-Added Services, Biotech Startups, Financing Outcomes, Post-Investment Intervention, China, Strategic Alignment, VC Specialization

Degree Awarded

SMU-SJTU Doctor of Business Administration

Discipline

Asian Studies | Entrepreneurial and Small Business Operations | Finance and Financial Management

Supervisor(s)

FU, Fangjian

First Page

1

Last Page

191

Publisher

Singapore Management University

City or Country

Singapore

Copyright Owner and License

Author

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