The change in the business model of venture capitalists from investing locally towards investing across borders started to intensify in the late 1990s. According to a dataset of European and NorthAmerican countries, we find that countries with higher expected growth and higher lagged stock market returns receive larger net cross-border venture capital inflows. Thus, portfolio companies located ...

Venture capital firms have unique capabilities in terms of dealing with high uncertainty, high degrees of information asymmetry, and providing access to a strategic network. This study examines the association between the presence of venture capital and the growth of startups. It explores whether venture capital leads to growth or, alternatively growth signals the need for venture capital. It a...

Federal Reserve Bank of Atlanta E C O N O M I C R E V I E W Fourth Quarter 2002 I n 2001 the venture capital industry experienced its biggest decline ever. According to the National Venture Capital Association (NVCA), investments by venture capital firms in the fourth quarter of 2001 were at $7.1 billion. This amount was approximately a third of the level the year before, which was $20.9 billio...

This paper builds a venture capital index from 1987 to 1999 that consists of 12,946 rounds of venture financing with 5,643 venture-backed firms. The paper uses two innovative techniques, a re-weighting procedure and a method of moment repeat sales regression, to mitigates three problems missing data, censored data, and sample selection. We report the time series of capital flows, net asset valu...

This paper describes board size and composition and investigates the role of venture capital in a sample of 1,116 firms’ initial public offerings. First, firms backed by venture capital have fewer insider and instrumental directors and more independent outsiders. Second, we consider board composition as the outcome of a bargain between the CEO and outside shareholders. Representation of indepen...

The Venture capital is the life blood of new industry in the financial market today. Venture capital is the money provided by professionals who invest alongside management in young, rapidly growing companies that have the potential to develop into significant economic contributors. Venture capital is an important source of equity for start-up companies. Venture capital can be visualized as “you...

This thesis investigates the role of venture capital in regional economic development and presents results from a national survey of venture capital firms concerning the existence of capital gaps in the venture capital markets. In order to explore these issues, the author lays out the theoretical underpinnings of venture capital-oriented indigenous growth strategies and assesses the relationshi...

Banks routinely invest in the venture capital market. Why are they interested in venture capital, and how do their investments differ from independent venture capitalists? The banking literature suggests that banks may have some valuable expertise that they might want to leverage into venture capital. Alternatively, banks may want to build relationships in the venture market for their core lend...

This paper analyses the influence of the capital market on the labour market. Especially the impact of start-up financing on the structure of unemployment is of interest. We use a crosscountry panel data analysis to examine how venture capital investment influences disaggregate unemployment. As we expected, venture capital investment has different influences on sectoral-, educationaland occupat...

In this paper we will present a summary of our initial research focusing on the development of the venture capital industry in the Philippines, which is a developing country that has recently been a recipient of significant venture capital investment. More specifically, we analyzed the impact of the lack of a fully developed institutional framework (primarily financial and legal) on the develop...