Geographical and institutional distances in venture capital deals : how syndication and experience drive internationalization patterns


Tykvová, Tereza ; Schertler, Andrea


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URL: http://ub-madoc.bib.uni-mannheim.de/3167
URN: urn:nbn:de:bsz:180-madoc-31675
Document Type: Working paper
Year of publication: 2011
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: G24 F21 ,
Subject headings (SWD): Risikokapital , Private Equity , Anlageverhalten , Entfernung , Arbeitsgemeinschaft
Keywords (English): Multiple regression analysis , syndicates , venture capital , internationalization , distance , experience
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.
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Das Dokument wird vom Publikationsserver der Universitätsbibliothek Mannheim bereitgestellt.




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Tykvová, Tereza ; Schertler, Andrea (2011) Geographical and institutional distances in venture capital deals : how syndication and experience drive internationalization patterns. Open Access [Working paper]
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