Abstract

Recognition that some firms internationalize intensively early in their lives suggests limitations of extant internationalization theories vis-à-vis young firms with foreign revenues. The use of U.S. venture capital (VC) surged simultaneous to the recognized emergence of such international new ventures (INVs). Ventures backed by early round VC are young, in industries characterized by risk and uncertainty, and are more likely to have high growth goals, fostering internationalization. Portfolio firms (PFs) receiving VC have options presented from sources with differing characteristics which shape preferences, such as geographic diversity. Such characteristics are related to differences in the organizations providing capital (e.g., corporate or independent VC firms). Differences due to VC sources on international intensity suggest the question “How do independent and corporate venture capital differentially impact the international intensity of portfolio firms?”

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