Given the increasing importance of private equity in the world economy, we examine the strategic decision to finance a business in an international context by evaluating whether private equity is a substitute for or a complement to other sources of external finance. We find strong evidence that...

We calculate composite indices to compare the attractiveness of 27 European countries for institutional investments into the Venture Capital and Private Equity asset class. To achieve this we use 42 different parameters, and propose an aggregation structure that allows for benchmarking on more...

This paper examines the valuation of venture capital (VC)-backed IPOs in Canada and the US over the 1986-2007 period. The data indicate that differences in listing standards between Canada and the US account for fact that IPOs are valued substantially lower in Canada. We consider alternative...

This paper demonstrates that liquidity gaps disrupt the venture capital cycle. How should this problem be addressed? We offer a new perspective on the venture capital cycle and argue that the emergence of more liquidity options can bridge these gaps. Analyzing the development of secondary...

Venture capitalists find, fund, and assist high-impact entrepreneurs - individuals whose firms are instruments of Schumpeter's (1939) “creative destruction” and the “creation of new economic spaces” (Acs, 2008). These entrepreneurs form firms characterized by a lack of substantial...

Contributing to the literature on local bias and financial networks, we examine how direct and indirect network ties of financial intermediaries mitigate the effects of distance and preference for local investments. In our analysis of cross-border venture capital exits, we find that proximity...

We investigate the determinants of cross-border venture capital (VC) performance using a large sample of 10,205 cross-border VC investments by 1,906 foreign VC firms (VCs) in 6,535 domestic portfolio companies. We focus on the impact of a domestic country's economic freedom on the performance of...

We examine the relation between venture capital (VC) investments, M&A activity, and merger competition laws in 48 countries around the world. We find evidence of a strong positive association between VC investments and lagged M&A activity, consistent with the hypothesis that an active M&A market...

An increasingly global venture capital (VC) business raises the question whether foreign VCs'investments pull economic activity away from domestic economies. Using a large sample ofVC-backed European ventures, we analyze whether involvement of foreign VCs influencesfirms' and entrepreneurs'...

In 2002 a comprehensive survey of German venture capital and private equity firms was conducted. Based on a follow-up survey in 2005, the development of the German venture capital and private equity market can be shown. The first focus of the report lies on structural topics like market...