Cross-Border Venture Capital Investments Why Do Venture Capital Firm

Hortense Tarrade analyses over 200,000 venture capital (VC) investments over the past 20 years to understand the investors' motivation to select national or foreign companies into their portfolio. She compares the sensitivity of US-based, non-US and Germa

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Hortense Tarrade

Cross-Border Venture Capital Investments Why Do Venture Capital Firms Invest at a Distance? Foreword by Prof. Dietmar Harhoff, Ph.D

RESEARCH

Hortense Tarrade München, Germany Voestalpine Linz, Österreich

Bernhard Schmidt Langenhagen, Deutschland

Dissertation Ludwig-Maximilians-Universität München, 2010 D 19

ISBN 978-3-8349-3118-4 DOI 10.1007/978-3-8349-6939-2

ISBN 978-3-8349-6939-2 (eBook)

The Deutsche Nationalbibliothek lists this publication in the Deutsche Nationalbibliografie; detailed bibliographic data are available in the Internet at http://dnb.d-nb.de. Springer Gabler © Gabler Verlag | Springer Fachmedien Wiesbaden 2012 This work is subject to copyright. All rights are reserved by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. Exempted from this legal reservation are brief excerpts in connection with reviews or scholarly analysis or material supplied specifically for the purpose of being entered and executed on a computer system, for exclusive use by the purchaser of the work. Duplication of this publication or parts thereof is permitted only under the provisions of the Copyright Law of the Publisher’s location, in its current version, and permission for use must always be obtained from Springer. Permissions for use may be obtained through RightsLink at the Copyright Clearance Center. Violations are liable to prosecution under the respective Copyright Law. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. While the advice and information in this book are believed to be true and accurate at the date of publication, neither the authors nor the editors nor the publisher can accept any legal responsibility for any errors or omissions that may be made. The publisher makes no warranty, express or implied, with respect to the material contained herein. Cover design: KünkelLopka GmbH, Heidelberg Printed on acid-free paper Springer Gabler is a brand of Springer DE. Springer DE is part of Springer Science+Business Media. www.springer-gabler.de

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Foreword Venture capital financing is an important motor of entrepreneurship throughout the world. As borders lose their relevance thanks to new technologies and sharply reduced transportation costs, start-ups are increasingly international from the start. This raises the question of which VC firm they should seek financing from – local or foreign. From the venture capitalist firms' perspective, a similar question is posed: why would they restrict their investments to com