We examine the extent to which transnational connections based on trade, migration, and previous collaboration affect the specific choice of foreign markets for entry for venture capital firms. The question of what attracts organizations to new markets is an important one in organizational theory (Baum & Korn, 1996; Greve, 1998; Haveman, 1993). American venture capital (VC) industry provides an interesting context to examine the impact of transnational connections on firms’ foreign market choices, as VC firms have stepped up their investments abroad in highly selective ways, investing in some foreign countries though not in others. We examine the impact of three types of transnational connections on VC firms’ foreign market entry: (1) magnitude of trade ties, (2) presence of transnational communities in the new market, and (3) number of domestic collaborators who already operate in the new market.