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Corporate Relocation in Venture Capital Finance

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Date

Authors

Cumming, Douglas
Fleming, Grant
Schwienbacher, Armin

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Publisher

John Wiley & Sons Inc

Abstract

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

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Citation

Source

Entrepreneurship Theory and Practice: the official journal of the United States Association for Small business and Entrepreneurship

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License Rights

Restricted until

2037-12-31
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