Using insights from the resource-based view, social capital, and network theories, the authors develop a model of how family social capital, as well as an entrepreneur’s knowledge capital and external social capital, influences the venture creation process. The model is tested on a sample of 85 nascent Hispanic entrepreneurs. Results indicate that family social capital, measured as family suppo...

Cross-border investments represent a substantial share of venture capital activities. We use a new and comprehensive dataset on worldwide investments to analyze the internationalization of venture capital financing. Our results from the perspectives of (i) venture capitalists, (ii) portfolio companies, (iii) portfolio companies’ countries and (iv) pairs of venture capitalists’ and portfolio com...

Using dynamic panel estimations, this paper identifies driving forces of venture capital activity for Western European countries. Driving forces might be the liquidity of stock markets, human capital endowment, and labour market rigidities. I find that these factors do not affect expansion stage investments used as a broader definition of venture capital, while they positively affect early stag...

This paper examines empirical evidence on the impact that venture capitalists can have on the development path of new firms. We use a hand-collected data set on Silicon Valley start-up companies that allows us to “look inside the black box” and analyze the influence of venture capital on the professionalization of firms’ internal organization. The evidence suggests that there is a “soft” facet ...

A ccess to equity capital is a critical component of business entrepreneurship. Young companies lack the cash flows necessary for debt repayment. They need patient capital, such as equity and near-equity, to develop and get their products ready for market. As Barkley and Henry confirm in this issue of the Review, the creation and growth of such companies is the path to economic prosperity for m...

Venture capital funds have been facing increasing regulatory scrutiny since the 2007 financial crisis, particularly in respect of calls for increased disclosure requirements. In this paper, we examine whether more stringent securities regulation helps or hinders the supply and performance of venture capital as well as new business creation (i.e., entrepreneurial spawning). Based on data from 34...

This paper explores the method for evaluating the risks of venture capital projects. Based on analyzing the factors affecting the risks of venture capital projects, I establish an index system for evaluating the risks. I present a model for evaluating the risk level of single venture capital project by applying the uncertain type analysis of hierarchy process and the extended weighted arithmeti...

Venture capital is broadly acknowledged as being an important constituent of a mature habitat for high-technology entrepreneurship as practiced in Silicon Valley (Lee et al. 2000). Each chapter in this book has examined the significance of venture capital in the economies of the regions under discussion and its particular place in the regional habitats for innovation that have appeared. As with...

Financial networks have been extensively studied as examples of real world complex networks. Based on the data from Chinese GEM and SME board, we establish a venture capital (VC) network to study the statistical properties, topological properties and community structure of the Chinese venture capital network. The result shows that there are no dominant venture capital firms in China which act a...