Corporate Relocation in Venture Capital Finance
40 Pages Posted: 10 Mar 2005 Last revised: 18 Jan 2009
Date Written: September 24, 2007
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: Suggested Citation