What lures cross-border venture capital inflows?

Andrea Schertler () and Tereza Tykvova

Journal of International Money and Finance, 2012, vol. 31, issue 6, 1777-1799

Abstract: We investigate if economic factors drive gross and net cross-border venture capital inflows differently. Using a dataset of venture capital investments in European and North American countries from 2000 to 2008, we find that higher expected economic growth goes hand in hand with higher gross as well as net inflows, while higher market capitalization and a more favorable environment for venture capital intermediation entail higher gross inflows, but lower net inflows. The latter two findings may suggest that cross-border venture capital inflows partly compensate for potential limits in domestic venture capital supply. However, the findings may also reflect that venture capitalists’ locational decisions depend on the viability of capital markets.

Keywords: Venture capital; Internationalization; Gross and net cross-border inflows; Economic factors (search for similar items in EconPapers)
JEL-codes: F21 G24 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (18)

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Working Paper: What lures cross-border venture capital inflows? (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jimfin:v:31:y:2012:i:6:p:1777-1799

DOI: 10.1016/j.jimonfin.2012.03.012

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