Abstract

We study whether cross-border venture capital investors (CBVCs) contribute to the success of a venture capital (VC) syndicate by overcoming conditions in the host country hindering exit. Specifically, we examine whether CBVCs enhance the set of available exit opportunities offered by the country of the portfolio company. Exit is more difficult and least likely to be successful in countries in which capital markets are less developed, however no study has analyzed whether CBVCs are as exposed as local investors to inefficiencies of capital markets in the host country.

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