While corporate venture capital (CVC) investors can provide specialized value-added services to entrepreneurial ventures, they are oftentimes subject to allegations for exploitation and misappropriation. These conflicting considerations have resulted in a hesitance of founders to enter CVC relationships—despite extensive evidence confirming positive venture performance effects of CVC-backing. Integrating signaling theory with the dualistic model of passion, we propose that both the appreciation and rejection of CVCs’ value-added services—and thus the willingness to accept a CVC investment—depends not only on CVC control but also on the founder’s emotional identity as reflected by harmonious and obsessive passion. Insights from a conjoint experiment with founders support most of our contentions.
