What Shapes Venture Capital Firms’ Expansion across the Globe? Country-Specific Factors and Firm-Specific Factors

Abstract

“Globalization” has recently been a prominent theme in the venture capital (VC) industry. According to the Deloitte Touche Tohmatsu 2009 Global Venture Capital Survey, 52% of VCs already invest outside their home countries (Madhavan and Iriyama [2012]). Once exclusive to OECD countries, cross-border VC investment opportunities are now emerging in countries such as China and India (Saxsenian [2006]). Originally, this trend was promoted by Western venture capitalists. For example, Kleiner Perkins Caufield & Byers (KPCB), one of the top-tier venture capital firms in Silicon Valley, has operated satellite offices in Beijing and Shanghai since 2007.