Corporate Relocation in Venture Capital Finance

35 Pages Posted: 8 Oct 2009

See all articles by Douglas J. Cumming

Douglas J. Cumming

Florida Atlantic University

Grant Fleming

Continuity Capital Partners

Armin Schwienbacher

SKEMA Business School

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Abstract

This paper introduces an analysis of international relocation decisions of venture capital (VC)-backed companies. Relocations to the United States are motivated by economic conditions as well as an improvement in the laws of the country in which the entrepreneurial firm is based. Relocations to the United States yield much greater returns to Asia-Pacific VCs than investing in companies already based in the United States at the time of VC investment. Further, more experienced Asia-Pacific VCs have greater success with their investee relocations to the United States, and these relocations yield higher returns relative to staying in their country of origin.

Suggested Citation

Cumming, Douglas J. and Fleming, Grant Alan and Schwienbacher, Armin, Corporate Relocation in Venture Capital Finance. Entrepreneurship Theory and Practice, Vol. 33, Issue 5, pp. 1121-1155, September 2009. Available at SSRN: https://ssrn.com/abstract=1485117 or http://dx.doi.org/10.1111/j.1540-6520.2009.00337.x

Douglas J. Cumming (Contact Author)

Florida Atlantic University ( email )

777 Glades Rd
Boca Raton, FL 33431
United States

HOME PAGE: http://booksite.elsevier.com/9780124095373/

Grant Alan Fleming

Continuity Capital Partners ( email )

GPO Box 314
Canberra, Australian Capital Territory 2601
Australia

Armin Schwienbacher

SKEMA Business School ( email )

Avenue Willy Brandt
Euralille, 59777
France

HOME PAGE: http://sites.google.com/view/armin-schwienbacher

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