Biodiversity entrepreneurship

Sean Shun Cao, G Andrew Karolyi, William W Xiong and Hui Xu

Review of Finance, 2026, vol. 30, issue 1, 43-86

Abstract: We study an emerging class of startup organizations focused on biodiversity conservation and the challenges they face in financing these ventures. By fine-tuning a large language model, we identify 630 biodiversity-linked startups in PitchBook and compare their financing dynamics with those of other ventures. Biodiversity startups raise less capital but attract a broader coalition of investors, including not only venture capitalists (“value investors”) but also mission-aligned impact funds and public institutions (“values investors”). Values investors provide incremental capital rather than substituting value investors, but funding gaps persist. We show biodiversity-linked startups use social media (Twitter) activity to help connect with value investors. Our findings can inform policy and practice for mobilizing private capital toward biodiversity preservation, emphasizing hybrid financing models and strategic communication.

Keywords: biodiversity finance; entrepreneurship; venture capital; sustainable investing; fine-tuning; large language model; social media; Twitter (search for similar items in EconPapers)
JEL-codes: D83 G11 G23 G24 H41 Q57 (search for similar items in EconPapers)
Date: 2026
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