Abstract
The thesis aims to explore the evolving role of sustainable finance, with a particular focus on ESG (Environmental, Social, and Governance) investments in the venture capital industry. The research addresses the growing importance of integrating ESG criteria into financial decisions, particularly in venture capital, which plays a pivotal role in financing innovative startups aimed at promoting sustainability. While the impact of ESG investments on corporate performance has been widely explored, there is limited literature that thoroughly examines how ESG principles influence venture capital investment strategies and the long-term growth of startups. Additionally, few studies provide a comprehensive framework for understanding the relationship between venture capital, ESG criteria, and sustainable development at a global level. Through in depth literature reviews and empirical analysis, this thesis explores sustainable finance, focusing on ESG investments within the venture capital industry. It reviews the literature on sustainable finance, particularly the integration of ESG factors into entrepreneurial finance, and critically examines the impact of ESG on firm valuation, investment strategies, and long-term corporate performance.