Advances in Management and Applied Economics

How Can Taiwan's Venture Capital Industry Develop Ethical Decision-Making Mechanisms for Investing in Biotechnology Startups?

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• Abstract

   

  This study investigates the ethical challenges faced by Taiwan’s venture capital (VC) industry when investing in biotechnology companies and proposes mechanisms to address these issues. Using a literature review, case analysis, and expert interviews, the study identifies dilemmas such as information asymmetry, uncertainty, and conflicts of interest. Findings reveal that excessive pursuit of profits often leads VC firms to overlook social responsibilities, increasing ethical risks and harming industry reputation. To mitigate this, the study recommends that VC firms establish dedicated ethical committees to audit risks and provide guidance. It also suggests creating investment guidelines to define acceptable practices and integrating ethics, morality, and legal compliance education into the biotechnology sector. These recommendations aim to help Taiwan’s VC industry effectively address ethical challenges, enhance social responsibility, and support sustainable industry growth.

   

  JEL classification numbers: G24, D70, O35.

  Keywords: Venture capital firms, Biotech start-ups, Ethical decision-making, Expert in-depth interviews.