When U.S. Venture Capital Ventures Abroad

23 Pages Posted: 4 Mar 2014

See all articles by Khaled Abdou

Khaled Abdou

Pennsylvania State University Berks

Oscar Varela

University of Texas at El Paso - College of Business Administration - Department of Economics and Finance

Date Written: March 2014

Abstract

Older, more experienced and smaller U.S. venture capital firms are most probable to sacrifice proximate distance for new opportunities in foreign, and mostly mature, portfolio companies. These companies are treated differently than the domestic ones, as U.S. venture capital firms collaborate with and delegate monitoring to foreign partners, rather than stage or syndicate. Successful outcomes mostly occur in more mature, non‐hi‐tech, portfolio companies that receive more financing per round. Our results are robust to the investee country's openness and industry classification, stage of the investment and possible sample selection problems.

Keywords: Venture capital, International, Globalization

Suggested Citation

Abdou, Khaled and Varela, Oscar, When U.S. Venture Capital Ventures Abroad (March 2014). Accounting & Finance, Vol. 54, Issue 1, pp. 1-23, 2014, Available at SSRN: https://ssrn.com/abstract=2404092 or http://dx.doi.org/10.1111/acfi.12005

Khaled Abdou (Contact Author)

Pennsylvania State University Berks ( email )

Tulpehocken Road
P.O. Box 7009
Reading, PA 19610
United States

Oscar Varela

University of Texas at El Paso - College of Business Administration - Department of Economics and Finance ( email )

500 W. University Ave.
El Paso, TX 79968
United States

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