Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/56877
Authors: 
Fritsch, Michael
Schilder, Dirk
Year of Publication: 
2010
Series/Report no.: 
Jena economic research papers 2010,069
Abstract: 
We investigate whether the supply of venture capital (VC) is driven by spatial proximity between a VC company and the portfolio firm. Our analysis is based on information about VC investments in Germany between 2004 and 2009. We find that possible problems caused by the geographic distance to a portfolio firm seem to be overcome by syndication of investments with one of the VC firms located close to the investment. Our analysis does, however, suggest that short geographic distance between an investor and the investment has an increasing effeon the probability for syndication as well as on the number of firms that join the syndicate. Hence, local VC suppliers may assume a role of an anchor connecting the regional economy to more distant parts of the industry.
Subjects: 
venture capital
syndication
geographic proximity
start-up financing
equity gap
JEL: 
G24
O16
D21
M13
R12
Document Type: 
Working Paper

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