This paper extends research in the field of private equity investments in family firms. It contributes to the literature by fundamentally analyzing the decision criteria of family firm owners for using minority investments of private equity investors. This type of financing might be of great...

Based on 1182 dyads of venture capitalists and German portfolio companies involved ina financing round between 2002 and 2007, we examine the importance of spatialproximity between investors and investees in a dense economy. We find that theprobability of a financing relationship decreases by 8%...