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This study assesses the geographic concentration of venture capital (VC) investments. Using Crunch base’s data from 1998 to 2019, the research finds that top-VCs investments lead to more local successful exits and at higher valuations. Successful entrepreneurs’ investments do not necessarily increase local exits, but they lead to higher exit valuations. It is not possible to infer that successful US exits will persistently signal top and non-top VCs to invest in local hubs, but the effects seem to be significant in the year of the exit. Investments from successful entrepreneurs are not relevant drivers for the increase of VC deals.
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Venture capital Entrepreneurial hubs Venture relocation Geographic concentration
