Taking risks in regions: the geographical anatomy of Europe's emerging venture capital market

Martin, Ron; Sunley, Peter; Turner, David

doi:10.1093/jeg/2.2.121

Cited by 108 publications

(63 citation statements)

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“…The UK VC market is also highly clustered around London and the southeast part of the country, thus, playing a dominant role Harrison, 1999, 2002a;Martin, 1989;Martin et al, 2005). For the 'emerging' VC 6 markets in continental Europe, such as France and Germany, Martin et al (2002) also found a considerable degree of spatial concentration but this concentration was not as pronounced as in the case of the USA or the UK.…”

Section: The Spatial Distribution Of Vc Supply and Investments In Germentioning

confidence: 96%

Does Venture Capital Investment Really Require Spatial Proximity? An Empirical Investigation

2008

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. We gratefully acknowledge the financial support by the German Research Foundation. Terms of use: Documents in F R E I B E R G W O R K I N G P A P E R S F R E I B E R G E R A R B E I T S P A P I E R E # 07 2006 __________________________________________________________________________ ISSN 0949-9970The Freiberg Working Paper is a copyrighted publication. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, translating, or otherwise without prior permission of the publishers. AbstractWe examine the role of spatial proximity for Venture Capital (VC) investments in Germany. The main database is a survey of 85 personal interviews with representatives of different types of financial institutions. The analysis shows that spatial proximity is far less important for VC investments than is often believed. For example, the results indicate that syndication is partly used as an alternative to spatial proximity. Telecommunication does not work as a substitute for face-toface contact. On the whole, regional proximity is not a dominant factor in VC partnerships. Therefore, the absence of VC firms in a region does not appear to cause a severe regional equity gap.JEL-classification: G24, O16, D21, M13, R12

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Section: The Spatial Distribution Of Vc Supply and Investments In Germentioning

confidence: 96%

Does Venture Capital Investment Really Require Spatial Proximity? An Empirical Investigation

2008

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“…Further, the European context of our empirical study necessitates a higher age limit than is typical in U.S.-based entrepreneurship studies. Early-stage equity funding is not as readily available in Europe as in the U.S. (Lockett, Murray, and Wright, 2002), with a particularly limited supply of venture capital in Belgium (Bygrave and Quill, 2007), and young fi rms have limited opportunities to go public (Martin, Sunley, and Turner, 2002). Less available capital results in longer development times for hightechnology fi rms (Bürgel, 1999).…”

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confidence: 99%

Learning from experience and learning from others: how congenital and interorganizational learning substitute for experiential learning in young firm internationalization

Bruneel

Yli‐Renko

Clarysse

2010

Strategic Entrepreneurship

227

214

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This article addresses a critical issue for entrepreneurs and managers pursuing internationalization strategies: how fi rms can accumulate the knowledge and skills required for successful international expansion. Specifi cally, we examine how young fi rms may compensate for their lack of fi rm-level international experience by utilizing other sources of knowledge. Drawing on organizational learning theory, we develop an integrative framework that looks at the joint and interactive effects of experiential learning by the fi rm, the management team's pre-start-up international experience (i.e., congenital learning), and interorganizational learning from key exchange partners (customers, suppliers, investors, etc.). Utilizing empirical data on 114 young, technology-based fi rms in Flanders, Belgium, we fi nd that a fi rm's level of international experience negatively moderates the effects of congenital and interorganizational learning on the extent of internationalization. That is, the lower a fi rm's experiential learning, the more signifi cant the effects of the start-up team's prior international knowledge base and the knowledge and skills acquired through key partners. These results make important theoretical and empirical contributions to the international entrepreneurship and organizational learning literatures by highlighting some of the factors underlying learning advantages of newness that facilitate the internationalization of young fi rms and by explicating substitutive interrelationships among different learning mechanisms. Copyright © 2010 Strategic Management Society. INTRODUCTIONInternationalization is a complex and uncertain process that poses signifi cant challenges for any fi rm. For young fi rms, the expansion into foreign markets is a particularly important and intricate decision-internationalization is increasingly a competitive necessity for such fi rms, especially in technology-based industries, but resource constraints and liabilities of newness exacerbate the challenges and risks involved (Autio, Sapienza, and Almeida, 2000;Oviatt and McDougall, 1994;Sapienza et al., 2006). Entering foreign environments means that the fi rm's existing knowledge and capabilities are often not applicable, and the fi rm has to develop new knowledge and capabilities in order to succeed Vahlne, 1977, 1990; Keywords: internationalization; young fi rms; organizational learning; interorganizational learning *Correspondence to: Helena Yli-Renko, University of Southern California, Lloyd Greif Center for Entrepreneurial Studies, Bridge Hall One, Los Angeles, CA 90089-0801, U.S.A. E-mail: hylirenko@marshall.usc.edu Oviatt, 1996;Sapienza et al., 2006). Accordingly, international business (IB) research has increasingly zeroed in on the critical question of how fi rms accumulate the knowledge and skills required for international expansion (e.g., Barkema, Bell, and Pennings, 1996;Lu and Beamish, 2004;Nadolska and Barkema, 2007;Petersen, Pedersen, and Lyles, 2008). In addressing this question, the bulk of extant IB resear...

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“…First, VC funds usually invest with the primary aim to get the highest capital return in the shortest possible time horizon (Gompers and Lerner 2001). Then, they target potentially cash-generating ventures regardless their geographical location, i.e., Italian VC funds invest across regions (Martin et al 2002) and a few of them also engage in cross-border investments (Schertler and Tykvová 2012). Second, to the best of our knowledge, while there is strong empirical evidence that VC funds target and strategically design their investments through syndication networks, so exploiting VC community resources (Sorenson and Stuart 2001), there is no empirical evidence that VC investments are driven by community values.…”

Section: Identification Strategymentioning

confidence: 99%

Is Green the New Gold? Venture Capital and Green Entrepreneurship

2016

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We test whether born-to-be-green represents a signal toward potential venture capital (VC) investors on a sample of Italian, independent, unlisted, high-tech entrepreneurial firms. We employ several identification strategies by controlling for the major potential signals and the alleged selection bias between green and nongreen entrepreneurs. We exploit firm-level information about the Bactive search for VC financing.Â lternatively, we exploit the cross-local community variation in the awareness about environmental issues in an instrumental variable setting. Our results show that neither running a business based on green technologies nor positioning a business in a green sector per se are strongly correlated with the likelihood to get VC. Instead, we find that born-to-be-green can be a reliable signal for investors only when entrepreneurs perform activities based on green technologies/products and position their business in a green sector, at the same time. Further, we present three contingencies that moderate the association between green business propositions and the likelihood to get VC, namely the technical/scientific education of the founder(s), the origin of the firm as academic spin-out, and the presence of corporate shareholders into the venture's equity. The paper offers relevant managerial implications.

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Taking risks in regions: the geographical anatomy of Europe's emerging venture capital market

Cited by 108 publications

References 0 publications

Does Venture Capital Investment Really Require Spatial Proximity? An Empirical Investigation

Does Venture Capital Investment Really Require Spatial Proximity? An Empirical Investigation

Learning from experience and learning from others: how congenital and interorganizational learning substitute for experiential learning in young firm internationalization

Is Green the New Gold? Venture Capital and Green Entrepreneurship

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