Entrepreneurial ventures are often formed in regional contexts, hence clustered in geographical space due to localized social networks, support institutions like universities, VC firms, advice networks, human capital, and the mobility thereof. A prominent factor is the role of knowledge flows and spillovers) which is seen as the most intangible and tacit one and has inspired streams of research in knowledge- and technology-intensive sectors (Audretsch & Keilbach, 2004; Audretsch & Lehmann, 2005. We build on this understanding through an explorative study of knowledge types and spillovers in the role of entrepreneurial venture formation in the Indian software sector. We draw from entrepreneurship and international business literatures to determine the impact on different venture types – new ventures (Yli-Renko, Autio, & Sapienza, 2001) vs. corporate ventures (Wadhwa & Kotha, 2006). We aim to address the research questions 1) how knowledge spillovers impact new ventures and 2) if and how this is moderated by type of knowledge and venture.