Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/44989
Authors: 
Tykvová, Tereza
Schertler, Andrea
Year of Publication: 
2011
Series/Report no.: 
ZEW Discussion Papers 11-022
Abstract: 
Drawing on a novel dataset of worldwide venture capital deals, we investigate how venture capitalists (VCs) overcome the complexity of investing in geographically and institutionally distant regions. Our results indicate that syndicating with local VCs is a common way for foreign VCs to gain deal access, overcome the complexity of investing in distant regions and offset their lack of within-country experience. The foreign VC's distance from the portfolio company ceases to be a serious investment obstacle when he can rely on a highly experienced local VC. Our results further suggest that inexperienced VCs, i.e. those VCs with a large need for syndication, increase their chances to invest across borders when they invest in small deals jointly with local inexperienced partners.
Subjects: 
Multiple Regression Analysis
Syndicates
Venture Capital
Internationalization
Distance
Experience
JEL: 
F21
G24
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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