Corporate Relocation in Venture Capital Finance

40 Pages Posted: 10 Mar 2005 Last revised: 18 Jan 2009

See all articles by Douglas J. Cumming

Douglas J. Cumming

Florida Atlantic University

Grant Fleming

Continuity Capital Partners

Armin Schwienbacher

SKEMA Business School

Date Written: September 24, 2007

Abstract

This paper introduces an analysis of international relocation decisions of venture capital (VC) - backed companies. Relocations to the US 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 US yield much greater returns to Asia-Pacific VCs than investing in companies already based in the US at the time of VC investment. Further, more experienced Asia-Pacific VCs have greater success with their investee relocations to the US, and these relocations yield higher returns relative to staying in their country of origin.

Keywords: International Venture Capital, Entrepreneurship, International Corporate Relocation

JEL Classification: F36, F21, F02, G24

Suggested Citation

Cumming, Douglas J. and Fleming, Grant Alan and Schwienbacher, Armin, Corporate Relocation in Venture Capital Finance (September 24, 2007). Entrepreneurship Theory & Practice, forthcoming EFA 2005 Moscow Meetings, Available at SSRN: https://ssrn.com/abstract=676521 or http://dx.doi.org/10.2139/ssrn.676521

Douglas J. Cumming (Contact Author)

Florida Atlantic University ( email )

777 Glades Rd
Boca Raton, FL 33431
United States

HOME PAGE: http://sites.google.com/view/douglascumming/bio?authuser=0

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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