- A-Z
- Jena Economic Resea...
- Volume 4
- The Regional Supply...
- Autor(in)
- Erschienen
- 5. Oktober 2010
- Nummer des Discussion-Papers
-
2010-069
- Schlagwort(e)
-
equity gap
geographic proximity
start-up financing
syndication
Venture Capital
- Zusammenfsg.
-
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.
- article pub. typess JER
- Research article
- article languages JER
- Englisch
- JEL-Classification for JER
- G24 - Investment Banking; Venture Capital; Brokerage; Rating Agencies ; O16 - Economic Development: Financial Markets; Saving and Capital Investment; Corporate Finance and Governance ; D21 - Firm Behavior ; M13 - New Firms; Startups ; R12 - Size and Spatial Distributions of Regional Economic Activity