Angel Investment, Venture Capital, and the Sustainable Development of Technology Companies: The Moderating Role of ESG Performance

Global angel investment and venture capital are key financial drivers supporting the long-term growth of technology companies, and they play a vital role in improving the global science and technology innovation financial system and advancing green and sustainable transformation. This paper uses data on technology-sector companies listed on the A-share market from 2017 to 2025 to construct a multi-period DID model. It empirically examines the impact of angel investment and venture capital on the sustainable development of technology companies and investigates the moderating effect of ESG performance. The study finds that angel investment can significantly enhance the level of sustainable development in technology firms. Mechanism tests indicate that angel investment indirectly empowers sustainable development by attracting and introducing venture capital. The moderating effect shows that strong ESG performance positively reinforces the promotional role of angel investment and venture capital in the sustainable development of technology firms. Heterogeneity analysis reveals that these enhancement and moderating effects are more pronounced in high-tech industries, private enterprises, and asset-light technology firms. These findings provide empirical evidence and policy guidance for governments worldwide to direct venture capital toward supporting science and technology enterprises, help technology firms improve their ESG governance systems, and achieve long-term sustainable operations.