Investment strategies of cross-border venture capital investors
- Author
- David Devigne (UGent) and Sophie Manigart (UGent)
- Organization
- Abstract
- Venture capital (VC) firms investing abroad use several strategies to mitigate liabilities of foreignness (LOF). Analyzing 1770 VC investments in young technology based companies, of which 20% by cross-border VC firms and 7% by their local branches, we confirm that cross-border VC firms invest in companies with lower information asymmetries. This effect disappears when controlling for co-investor characteristics. Cross-border VC firms have a higher probability to invest with local investors, larger investment syndicates and more experienced investors. When investing through a local branch, investors exhibit the same investment behavior as domestic VC firms. We thereby show that local co-investors or establishing a local presence mitigate LOF and enable cross-border investors to invest in the same companies as domestic VC firms.
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Citation
Please use this url to cite or link to this publication: http://hdl.handle.net/1854/LU-5804890
- MLA
- Devigne, David, and Sophie Manigart. “Investment Strategies of Cross-Border Venture Capital Investors.” Frontiers of Entrepreneurship Research, vol. 33, no. 2, Babson, 2013.
- APA
- Devigne, D., & Manigart, S. (2013). Investment strategies of cross-border venture capital investors. Frontiers of Entrepreneurship Research, 33(2). Babson.
- Chicago author-date
- Devigne, David, and Sophie Manigart. 2013. “Investment Strategies of Cross-Border Venture Capital Investors.” In Frontiers of Entrepreneurship Research. Vol. 33. Babson.
- Chicago author-date (all authors)
- Devigne, David, and Sophie Manigart. 2013. “Investment Strategies of Cross-Border Venture Capital Investors.” In Frontiers of Entrepreneurship Research. Vol. 33. Babson.
- Vancouver
- 1.Devigne D, Manigart S. Investment strategies of cross-border venture capital investors. In: Frontiers of Entrepreneurship Research. Babson; 2013.
- IEEE
- [1]D. Devigne and S. Manigart, “Investment strategies of cross-border venture capital investors,” in Frontiers of Entrepreneurship Research, Ecully, France, 2013, vol. 33, no. 2.
@inproceedings{5804890, abstract = {{Venture capital (VC) firms investing abroad use several strategies to mitigate liabilities of foreignness (LOF). Analyzing 1770 VC investments in young technology based companies, of which 20% by cross-border VC firms and 7% by their local branches, we confirm that cross-border VC firms invest in companies with lower information asymmetries. This effect disappears when controlling for co-investor characteristics. Cross-border VC firms have a higher probability to invest with local investors, larger investment syndicates and more experienced investors. When investing through a local branch, investors exhibit the same investment behavior as domestic VC firms. We thereby show that local co-investors or establishing a local presence mitigate LOF and enable cross-border investors to invest in the same companies as domestic VC firms.}}, articleno = {{1}}, author = {{Devigne, David and Manigart, Sophie}}, booktitle = {{Frontiers of Entrepreneurship Research}}, isbn = {{0910897387}}, language = {{eng}}, location = {{Ecully, France}}, number = {{2}}, pages = {{15}}, publisher = {{Babson}}, title = {{Investment strategies of cross-border venture capital investors}}, volume = {{33}}, year = {{2013}}, }