Venture Capital and Internationalization

International Business Review 20: 423-439. 2011

Posted: 21 Jun 2014

See all articles by Andrea Schertler

Andrea Schertler

Leuphana University of Lueneburg

Tereza Tykvova

University of Hohenheim - Faculty of Business, Economics and Social Sciences

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Date Written: 2011

Abstract

Cross-border investments represent a substantial share of venture capital activities. We use a comprehensive dataset on investments worldwide to analyze the internationalization of venture capital financing. We postulate that cross-border activity is shaped by macroeconomic factors in the venture capitalists’ and the portfolio companies’ countries, as well as characteristics of the venture capitalists and the deals, which likely affect the costs and benefits of investing abroad. In order to analyze how country-specific, venture capitalist-specific and deal-specific factors affect cross-border activity, we use the country, venture capitalist and portfolio company perspectives. Our results suggest that factors capturing the benefits and costs of investing abroad determine international venture capital flows.

Keywords: Venture capital, Internationalization, Macroeconomic factors

JEL Classification: F21, G24

Suggested Citation

Schertler, Andrea and Tykvova, Tereza, Venture Capital and Internationalization (2011). International Business Review 20: 423-439. 2011, Available at SSRN: https://ssrn.com/abstract=2456240

Andrea Schertler (Contact Author)

Leuphana University of Lueneburg ( email )

Scharnhorststrasse 1
Lüneburg, 21314
Germany

Tereza Tykvova

University of Hohenheim - Faculty of Business, Economics and Social Sciences

Germany

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