Economic Geography, Venture Capital and Focal Points of Entrepreneurial Activity

20 Pages Posted: 24 Aug 2009

See all articles by Yochanan Shachmurove

Yochanan Shachmurove

City University of New York, CUNY City College of New York - Department of Economics; The University of Pennsylvania - Department of Economics

Date Written: August 24, 2009

Abstract

Economic geography receives limited consideration in the venture capital literature. This study utilizes thirty years of data concerning companies that initially were backed by venture capital. These firms are located in Entrepreneurial Focal Points in the United States, namely: California, Massachusetts, New York, Pennsylvania and Texas. How well do these companies operate once they go public? Do the scrutiny measures, expertise and financial backing that firms gain from the venture capitalists increase their annual and cumulative returns? The results show that returns on investment are adequate given their substantial risk.

Keywords: Annualized and cumulative returns, Venture Capital, Venture-Backed Public Companies, Active and Inactive firms, Pennsylvania, Massachusetts, California, Texas, New York

JEL Classification: C12, D81, D92, E22, G12, G24, G3, M13, M21, O16, O3

Suggested Citation

Shachmurove, Yochanan, Economic Geography, Venture Capital and Focal Points of Entrepreneurial Activity (August 24, 2009). PIER Working Paper No. 09-032, Available at SSRN: https://ssrn.com/abstract=1460823 or http://dx.doi.org/10.2139/ssrn.1460823

Yochanan Shachmurove (Contact Author)

City University of New York, CUNY City College of New York - Department of Economics ( email )

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The University of Pennsylvania - Department of Economics ( email )

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