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Title:Geographical and institutional distances in venture capital deals: How syndication and experience drive internationalization patterns PDF Logo
Authors:Tykvová, Tereza
Schertler, Andrea
Issue Date: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:urn:nbn:de:bsz:180-madoc-31675
Document Type:Working Paper
Appears in Collections:ZEW Discussion Papers
Publikationen von Forscherinnen und Forschern des ZEW

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