Relocation to Get Venture Capital: A Resource Dependence Perspective

Entrepreneurship Theory and Practice, Forthcoming

Posted: 18 Sep 2017

See all articles by Sofie De Prijcker

Sofie De Prijcker

Ghent University

Sophie Manigart

Vlerick Business School; Ghent University

Veroniek Collewaert

Vlerick Business School

Tom R. Vanacker

Ghent University; University of Exeter Business School

Date Written: September 14, 2017

Abstract

Using a resource dependence perspective, we theorize and show that non-venture-capital-backed ventures founded in U.S. states with a lower availability of venture capital (VC) are more likely to relocate to California (CA) or Massachusetts (MA) — the two VC richest states — compared to ventures founded in states with a greater availability of VC. Moreover, controlling for self-selection, ventures that relocate to CA or MA subsequently have a greater probability of attracting initial VC compared to ventures that stay in their home state. We discuss the implications for theory, future research, and practice.

Keywords: entrepreneurial firms; venture capital; relocation; first round

JEL Classification: M13, G24

Suggested Citation

De Prijcker, Sofie and Manigart, Sophie and Collewaert, Veroniek and Vanacker, Tom R., Relocation to Get Venture Capital: A Resource Dependence Perspective (September 14, 2017). Entrepreneurship Theory and Practice, Forthcoming. Available at SSRN: https://ssrn.com/abstract=3036859

Sofie De Prijcker

Ghent University ( email )

Kuiperskaai 55E
Ghent, 9000
Belgium

Sophie Manigart (Contact Author)

Vlerick Business School ( email )

Reep 1
Ghent, BE-9000
Belgium

Ghent University ( email )

Sint-Pietersplein 7
Gent, 9000
Belgium

Veroniek Collewaert

Vlerick Business School ( email )

Library
REEP 1
Gent, BE-9000
Belgium

Tom R. Vanacker

Ghent University ( email )

Sint-Pietersplein 7
Gent, 9000
Belgium

University of Exeter Business School ( email )

Streatham Court
Exeter, EX4 4JH
United Kingdom

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