Buy local? The geography of venture capital
We document geographic concentration by both venture capital firms and venture capital-financed companies in three metropolitan areas: San Francisco, Boston, and New York. We find that venture capital firms locate in regions with high success rates of venture capital-backed investments. Geography is...
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| Veröffentlicht in: | Journal of urban economics 2010, Vol.67 (1), p.90-102 |
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| container_end_page | 102 |
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| container_title | Journal of urban economics |
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| creator | Chen, Henry Gompers, Paul Kovner, Anna Lerner, Josh |
| description | We document geographic concentration by both venture capital firms and venture capital-financed companies in three metropolitan areas: San Francisco, Boston, and New York. We find that venture capital firms locate in regions with high success rates of venture capital-backed investments. Geography is also significantly related to outcomes. Venture capital firms based in locales that are venture capital centers outperform, regardless of the stage of the investment. This outperformance arises from outsized performance outside of the venture capital firms’ office locations, including in peripheral locations. If the goal of state and local policy makers is to encourage venture capital investment, outperformance of non-local investments suggests that policy makers might want to mitigate costs associated with established venture capitalists investing in their geographies rather than encouraging the establishment of new venture capital firms. |
| doi_str_mv | 10.1016/j.jue.2009.09.013 |
| format | Article |
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| fulltext | fulltext |
| identifier | ISSN: 0094-1190 |
| ispartof | Journal of urban economics, 2010, Vol.67 (1), p.90-102 |
| issn | 0094-1190 1095-9068 |
| language | eng |
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| source | RePEc; Elsevier ScienceDirect Journals Complete |
| subjects | Centre-periphery relations Economic geography Economic policy Entrepreneurship Entrepreneurship Performance measurement Start-ups Private equity Localization Geography Local products Localization Location of industry Metropolis Metropolitan areas Performance measurement Private equity Regional economics Start-ups Studies Urban economics Venture capital Venture capital companies |
| title | Buy local? The geography of venture capital |
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