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NBER Working Papers and Publications
|September 2008||The Internationalization of Venture Capital and Private Equity|
with Joshua Aizenman: w14344
This paper investigates the internationalization of venture capital (VC) and private equity (PE) investments. We derive flows between countries of VC and PE investments worldwide, relying on comprehensive firm-level data sources, covering three decades and about 100 countries. A gravity analysis indicates that distance, common language, and colonial ties are significant factors in directing these flows. Additionally, the presence of high-end human capital, a better business environment, high levels of military expenditure, and deeper financial markets are important local factors that attract international venture capital. There is also evidence of path dependency and persistence in VC and PE flows, indicating network effects and fixed costs of entry may be at work. Further analysis suggest...
Published: Joshua Aizenman, Jake Kendall, (2012) "The internationalization of venture capital", Journal of Economic Studies, Vol. 39 Iss: 5, pp.488 - 511