Venture Capital Internationalization: Synthesis and Future Research Directions

32 Pages Posted: 14 Nov 2018

See all articles by David Devigne

David Devigne

Ghent University; Vlerick Leuven Ghent Management School

Sophie Manigart

Vlerick Business School; Ghent University

Tom R. Vanacker

Ghent University; University of Exeter Business School

Klaas Mulier

Ghent University - Faculty of Economics and Business Administration

Date Written: December 2018

Abstract

Research on venture capital (VC) internationalization has expanded rapidly over the last decade. This paper reviews the extant literature on VC internationalization and highlights gaps in our knowledge. We identify three major research streams within this literature, which revolve around the following questions: (1) which VC firms invest across borders and what countries do they target; (2) how do VC firms address liabilities of foreign investing; and (3) what are the real effects of international VC investments? We provide an overview of the contributions in these research streams, discuss the role of public policy, and suggest avenues for future research. Specifically, we call for a deeper understanding of: (1) the functioning and impact of VC firms’ modes of internationalization; (2) micro‐level processes such as the functioning and decision making of international investment committees, or the development of international human and social capital; (3) the role of country institutions in VC internationalization and its real effects; and (4) the interplay of international VC with alternative financing sources.

Keywords: Cross‐border investment, Entrepreneurial finance, Foreign direct investment, Internationalization, Review, Venture capital

Suggested Citation

Devigne, David and Manigart, Sophie and Vanacker, Tom R. and Mulier, Klaas, Venture Capital Internationalization: Synthesis and Future Research Directions (December 2018). Journal of Economic Surveys, Vol. 32, Issue 5, pp. 1414-1445, 2018. Available at SSRN: https://ssrn.com/abstract=3283237 or http://dx.doi.org/10.1111/joes.12276

David Devigne (Contact Author)

Ghent University ( email )

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Belgium

Vlerick Leuven Ghent Management School ( email )

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Sophie Manigart

Vlerick Business School ( email )

Reep 1
Ghent, BE-9000
Belgium

Ghent University ( email )

Sint-Pietersplein 7
Gent, 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

Klaas Mulier

Ghent University - Faculty of Economics and Business Administration ( email )

Ghent, B-9000
Belgium

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