Is venture capital a regional business? The role of syndication

We investigate whether the supply of Venture Capital (VC) in Germany is driven by spatial influences. The study is based on information from more than 300 VC investments made in Germany in the year 2004 and 2005. We find evidence that the geographical distance between a VC company and the portfolio firm is not an important factor for German VC investments. Syndication of investments helps to overcome the problem of distance to portfolio firms if one of the investors is located close to the investment. Altogether, we find no evidence for a severe regional equity gap for young and innovative companies in Germany.

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Year of publication:	2006
Authors:	Fritsch, Michael ; Schilder, Dirk
Publisher:	Freiberg : Technische Universität Bergakademie Freiberg, Fakultät für Wirtschaftswissenschaften
Subject:	Venture Capital \| regional equity gap \| start-up financing \| entrepreneurship

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Series:	Freiberger Arbeitspapiere ; 2006/09
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	518486516 [GVK] hdl:10419/27103 [Handle] RePEc:zbw:tufwps:200609 [RePEc]
Classification:	G24 - Investment Banking; Venture Capital; Brokerage ; O16 - Financial Markets; Saving and Capital Investment ; D21 - Firm Behavior ; M13 - Entrepreneurship ; R12 - Size and Spatial Distributions of Regional Economic Activity
Source:	EconStor

Persistent link: https://www.econbiz.de/10010298516