Have a personal or library account? Click to login
Investigation of the Relationship Between Location and Success in Venture Capital Investments: European Context Cover

Investigation of the Relationship Between Location and Success in Venture Capital Investments: European Context

Open Access
|Apr 2025

References

  1. Adler, P., Florida, R., King, K., Mellander, C., (2019), The city and high-tech startups: The spatial organization of Schumpeterian entrepreneurship, Cities, 87, 121–130. https://doi.org/10.1016/j.cities.2018.12.013.
  2. Aminova, M., Marchi, E., (2021), The Role of Innovation on Start-Up Failure vs. its Success, The International Journal of Business Ethics and Governance, 41–72. https://doi.org/10.51325/ijbeg.v4i1.60.
  3. Amornsiripanitch, N., Gompers, P. A., Xuan, Y., (2019), More than Money: Venture Capitalists on Boards, The Journal of Law, Economics, and Organization, 35(3), 513–543. https://doi.org/10.1093/jleo/ewz010.
  4. Antretter, T., Blohm, I., Grichnik, D., (2018), Predicting Startup Survival from Digital Traces: Towards a Procedure for Early Stage Investors, International Conference on Information Systems. https://aisel.aisnet.org/cgi/viewcontent.cgi?article=1368&context=icis2018.
  5. Audretsch, D.B., Feldman, M.P., (1996), R&D Spillovers and the Geography of Innovation and Production, The American Economic Review, 86(3), 630–640.
  6. Balland, P., (2012), Proximity and the Evolution of Collaboration Networks: Evidence from Research and Development Projects within the Global Navigation Satellite System (GNSS) Industry, Regional Studies, 46(6), 741–756. https://doi.org/10.1080/00343404.2010.529121.
  7. Barg, J.A., Drobetz, W., Momtaz, P.P., (2021), Valuing start-up firms: A reverse-engineering approach for fair-value multiples from venture capital transactions, Finance Research Letters, 43, 102008. https://doi.org/10.1016/j.frl.2021.102008.
  8. Baum, J.a.C., Calabrese, T., Silverman, B.S., (2000), Don’t go it alone: alliance network composition and startups’ performance in Canadian biotechnology, Strategic Management Journal, 21(3), 267–294. https://doi.org/10.1002/(sici)1097-0266(200003)21:3.
  9. Bernstein, S., Giroud, X., Townsend, R.R., (2016), The impact of venture capital monitoring, The Journal of Finance, 71(4). 1591–1622. https://doi.org/10.1111/jofi.12370.
  10. Bloomberg, L.P., (2023, April 30), MSCI World Index, 2007 to 2021. Retrieved on April 30th 2023 from Bloomberg terminal.
  11. Boquist, A., Dawson, J., (2004), U.S. Venture Capital in Europe in the 1980s and the 1990s, The Journal of Private Equity, 8(1), 39–54. http://www.jstor.org/stable/43503396.
  12. Boschma, R., (2005), Proximity and Innovation: a Critical assessment, Regional Studies, 39(1), 61–74. https://doi.org/10.1080/0034340052000320887.
  13. Capolaghi, L., (2021, September 22). European Venture Capital’s resilience through a global pandemic. EY Luxembourg. https://www.ey.com/en_lu/private-equity/european-venture-capital-s-resilience-through-a-global-pandemic.
  14. Chen, H., Gompers, P.A., Kovner, A., Lerner, J., (2009), Buy Local? The geography of successful and unsuccessful venture capital expansion, Social Science Research Network. https://doi.org/10.2139/ssrn.1420371.
  15. Chopde, N., Nichat, M., (2013), Landmark Based Shortest Path Detection by Using A* and Haversine Formula, International Journal of Innovative Research in Computer and Communication Engineering. Retrieved from: https://www.rroij.com/open-access/landmark-based-shortest-path-detection-byusing-a-and-haversine-formula.pdf.
  16. Cornelius, B., Persson, O., (2006), Who’s who in venture capital research, Technovation, 26(2), 142–150. https://doi.org/10.1016/j.technovation.2005.05.009.
  17. Crunchbase, Inc. (2023, April 1). Crunchbase. San Francisco, California, Unites States. Retrieved on April 1st 2023, from https://www.crunchbase.com/.
  18. Cumming, D.J., Johan, S., (2008), Information asymmetries, agency costs and venture capital exit outcomes, Venture Capital, 10(3), 197–231. https://doi.org/10.1080/13691060802151788.
  19. Cumming, D., Johan, S., (2014), Venture Capital and Private Equity Contracting: An International Perspective. London: Elsevier.
  20. Da Rin, M., Nicodano, G., Sembenelli, A., (2006), Public policy and the creation of active venture capital markets, Journal of Public Economics, 90(8–9), 1699–1723. https://doi.org/10.1016/j.jpubeco.2005.09.013.
  21. Dalle, J., den Besten, M., Menon, C., (2017), Using Crunchbase for economic and managerial research. OECD Library. Retrieved from: https://www.oecdilibrary.org/industry-and-services/using-crunchbase-for-economic-and-managerial-research_6c418d60-en.
  22. Dauni, P., Firdaus, M.D., Asfariani, R., Saputra, M.I.N., Hidayat, A.A., Zulfikar, W.B., (2019), Implementation of Haversine formula for school location tracking, Journal of Physics, 1402(7), 077028. https://doi.org/10.1088/1742-6596/1402/7/077028.
  23. Davis, C., Zhao, L., (2019), How do business startup modes affect economic growth?, Canadian Journal of Economics/Revue Canadienne D’économique, 52(4), 1755–1781. https://doi.org/10.1111/caje.12417.
  24. Dealroom, (2020). Probability-2. Retrieved from: https://dealroom.co/uploaded/2020/08/Probability-2.pdf.
  25. Dealroom, (2021). Europe’s venture capital market booming in 2021. Private Equity Wire.
  26. den Besten, M., Matthijs, L., (2020), Crunchbase Research: Monitoring Entrepreneurship Research in the age of Big Data, Social Science Research Network. https://doi.org/10.2139/ssrn.3724395.
  27. Dvouletý, O., (2023), A note on the effects of start-up competitions: experience from the Czech Business Plan Contest “Idea of the Year.”, Journal of Innovation and Entrepreneurship, 12(1). https://doi.org/10.1186/s13731-023-00282-3.
  28. Eisenmann, T., (2021), Why Start-ups Fail, Harvard Business Review. Retrieved from: https://hbr.org/2021/05/why-start-ups-fail.
  29. Escobari, D., Serrano, A., (2016), Reducing asymmetric information in venture capital backed IPOs, Managerial Finance, 42(6), 553–568. https://doi.org/10.1108/mf-03-2015-0059.
  30. Florida, R., Mellander, C., (2014), Rise of the Startup City: The changing geography of the venture capital financed innovation, RePEc: Research Papers in Economics. https://econpapers.repec.org/RePEc:hhs:cesisp:0377.
  31. Flögel, F., Schepelmann, P., Zademach, H., Zörner, M., (2023), Injecting climate finance into SME lending in Germany: Opportunities for and limitations of regional savings and cooperative Banks, ZFW - Advances in Economic Geography, 0(0). https://doi.org/10.1515/zfw-2022-0011.
  32. Fritsch, M., Schilder, D., (2008), Does venture capital investment really require spatial proximity? An empirical investigation, Environment and Planning A: Economy and Space, 40(9), 2114–2131. https://doi.org/10.1068/a39353.
  33. Fuertes‐Callén, Y., Cuéllar-Fernández, B., Serrano‐Cinca, C., (2020), Predicting startup survival using first years financial statements, Journal of Small Business Management, 60(6), 1314–1350. https://doi.org/10.1080/00472778.2020.1750302.
  34. Giest, S., (2017), Overcoming the failure of ‘silicon somewheres’: learning in policy transfer processes, Policy and Politics, 45(1), 39–54. https://doi.org/10.1332/030557316x14779412013740.
  35. Gompers, P.A., Gornall, W., Kaplan, S.N., Strebulaev, I.A., (2020), How do venture capitalists make decisions?, Journal of Financial Economics, 135(1), 169–190. https://doi.org/10.1016/j.jfineco.2019.06.011.
  36. González-Cruz, T.F., Botella‐Carrubi, D., Martínez‐Fuentes, C., (2020), The effect of firm complexity and founding team size on agile internal communication in startups, International Entrepreneurship and Management Journal, 16(3), 1101–1121. https://doi.org/10.1007/s11365-019-00633-1.
  37. Google. (n.d.). [Google Maps various locations coordinates]. Retrieved on May 15th 2023, from https://www.google.com/maps.
  38. Gupta, V., Hanges, P.J., Dorfman, P.W., (2002), Cultural clusters: methodology and findings, Journal of World Business, 37(1), 11–15. https://doi.org/10.1016/s1090-9516(01)00070-0.
  39. Gupta, V., Levenburg, N.M., Moore, L.L., Motwani, J., Schwarz, T., (2011), The spirit of family business: A comparative analysis of Anglo, Germanic and Nordic nations, International Journal of Cross Cultural Management, 11(2), 133–151. https://doi.org/10.1177/1470595811399187.
  40. Harvard Business School. (n.d.). Student Life. Retrieved from Harvard Business School: https://college.harvard.edu/student-life/residential-life/cambridge-boston.
  41. Hidayat, S.E., Bamahriz, O., Hidayati, N., Sari, C. A., Dewandaru, G., (2022), Value drivers of startup valuation from venture capital equity-based investing: A global analysis with a focus on technological factors, Borsa Istanbul Review, 22(4), 653–667. https://doi.org/10.1016/j.bir.2021.10.001.
  42. Head, B., (2015), Toward more “Evidence‐Informed” policy making?, Public Administration Review, 76(3), 472–484. https://doi.org/10.1111/puar.12475.
  43. Heritage Foundation. (n.d.). Index of Economic Freedom. Retrieved on April 1st 2023, from https://www.heritage.org/index/about.
  44. Hosmer, D.W., Lemeshow, S., (2000), Applied Logistic Regression. https://doi.org/10.1002/0471722146.
  45. Ibrahim, D., (2018), Public or Private Venture Capital?, 94 Washington L. Rev. 1137 (2019). Retrieved from: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3266756.
  46. Kollmann, T., Stöckmann, C., Linstaedt, J., Kensbock, J., (2015), European Startup Monitor. Retrieved from: https://startupverband.de/fileadmin/startupverband/mediaarchiv/research/sonstige_studien/20160303_European_Startup_Monitor_2015.pdf.
  47. Kolvereid, L., Isaksen, E.J., (2006), New business start-up and subsequent entry into self-employment, Journal of Business Venturing, 21(6), 866–885. https://doi.org/10.1016/j.jbusvent.2005.06.008.
  48. KPMG, (2015), Why are big businesses looking to startups for innovation? Retrieved from: https://assets.kpmg.com/content/dam/kpmg/pdf/2015/02/big-business-start-ups-innovation.pdf.
  49. Letaïfa, S.B., Rabeau, Y., (2013), Too close to collaborate? How geographic proximity could impede entrepreneurship and innovation, Journal of Business Research, 66(10), 2071–2078. https://doi.org/10.1016/j.jbusres.2013.02.033.
  50. Li, Y., (2008), Duration analysis of venture capital staging: A real options perspective, Journal of Business Venturing, 23(5), 497–512. https://doi.org/10.1016/j.jbusvent.2007.10.004.
  51. Metrick, A., Yasuda, A., (2011), Venture Capital and Other Private Equity: a Survey, European Financial Management, 17(4), 619–654. https://doi.org/10.1111/j.1468-036x.2011.00606.x.
  52. Marin, A.A., Chitimiea, A., (2020), Entrepreneurial Knowledge and Digital Competencies–Keys for a Success of Students Entrepreneurship, Studia Universitatis „Vasile Goldis” Arad–Economics Series, 30(2), 57-69.
  53. Maus, C., Greven, A., Kurth, N., Brettel, M., (2023), How do investor characteristics of business angels and venture capitalists predict the occurrence of co-investments?, Journal of Business Economics, 1-49 (online first).
  54. Montani, D., Gervasio, D., Pulcini, A., (2020), Startup Company Valuation: The state of art and future trends, International Business Research, 13(9), 31. https://doi.org/10.5539/ibr.v13n9p31.
  55. Owen, R., Mason, C., (2019), Emerging trends in government venture capital policies in smaller peripheral economies: Lessons from Finland, New Zealand, and Estonia, Strategic Change, 28(1), 83–93. https://doi.org/10.1002/jsc.2248.
  56. Pathak, S., (2020), Contextualizing Well-Being for entrepreneurship, Business & Society, 60(8), 1987–2025. https://doi.org/10.1177/0007650320927688.
  57. Parry, E., Morley, M., Brewster, C., (2021), The Oxford Handbook of Contextual Approaches to Human Resource Management. Oxford Academic.
  58. Pisoni, A., Onetti, A., (2018), When startups exit: comparing strategies in Europe and the USA, Journal of Business Strategy, 39(3), 26–33. https://doi.org/10.1108/jbs-02-2017-0022.
  59. Riepe, J., Uhl, K., (2020), Startups’ demand for non-financial resources: Descriptive evidence from an international corporate venture capitalist, Finance Research Letters, 36, 101321. https://doi.org/10.1016/j.frl.2019.101321.
  60. Rohanaraj, T.T.A., (2023), A Systematic Literature Review on the Transformation of Entrepreneurial Intention to Entrepreneurial Action, ECONOMICS-INNOVATIVE AND ECONOMICS RESEARCH JOURNAL, 11(Sp. issue), 121-139.
  61. Ross, G., Das, S.R., Sciro, D., Raza, H., (2021), CapitalVX: A machine learning model for startup selection and exit prediction, The Journal of Finance and Data Science, 7, 94–114. https://doi.org/10.1016/j.jfds.2021.04.001.
  62. SEC, (2016, December 9th), JOBS Act. Retrieved from SEC: https://www.sec.gov/spotlight/jobs-act.
  63. Shead, S., (2021, October 22), Big-name U.S. tech investors are moving in on Europe in increasing numbers, CNBC. Retrieved from: https://www.cnbc.com/2021/10/22/general-catalyst-bessemer-lightspeed-expand-start-up-hunt-to-europe.html#:~:text=Tech-,Big%2Dname%20U.S.%20tech%20investors%20are%20moving,on%20Europe%20in%20increasing%20numbers&text=Veteran%20investor%20Alex%20Ferrara%2C%20a,capita list%20familiar%20with%20the%20matter.
  64. Shearmur, R., Doloreux, D., (2022), Innovation, scaling-up, and local development in peripheral regions: do establishments scale-up locally?, ZFW - Advances in Economic Geography, 66(4), 185–200. https://doi.org/10.1515/zfw-2022-0028.
  65. Silveira, R., Wright, R., (2016), Venture capital: A model of search and bargaining, Review of Economic Dynamics, 19, 232–246. https://doi.org/10.1016/j.red.2015.06.002.
  66. Stam, E., (2015), Entrepreneurial Ecosystems and Regional Policy: A sympathetic critique, European Planning Studies, 23(9), 1759–1769. https://doi.org/10.1080/09654313.2015.1061484.
  67. Stolz, L., (2020), Startup Competitions and their Role in Entrepreneurial Ecosystems: A Conceptual Attempt, Zeitschrift Fur Wirtschaftsgeographie, 64(4), 233–246. https://doi.org/10.1515/zfw-2020-0009.
  68. Szabo, E., Brodbeck, F.C., Hartog, D.N.D., Reber, G., Weibler, J., Wunderer, R., (2002), The Germanic Europe cluster: where employees have a voice, Journal of World Business, 37(1), 55–68. https://doi.org/10.1016/s1090-9516(01)00074-8.
  69. Tabachnick, B., Fidell, L., (2013), Using Multivariate Statistics (6th ed.). Pearson.
  70. Tech Nation, (2021), Tech Nation Report 2021. Tech Nation. Retrieved from: https://stagetechn.wpengine.com/report2021/.
  71. UCLA, (2021), LOGISTIC REGRESSION | SPSS ANNOTATED OUTPUT. Retrieved from UCLA: Statisitcal division: https://stats.oarc.ucla.edu/spss/output/logistic-regression/.
  72. Venture Forward, (2023, March 05), VC History. Retrieved from Venture Forward: https://ventureforward.org/resources-for-emerging-vc/vc-history/#:~:text=The%20first%20modern%20VC%20firm,Doriot.
  73. Wadhwa, V., (2020, February 11), Silicon Valley can’t be copied, MIT Technology Review. https://www.technologyreview.com/2013/07/03/177476/silicon-valley-cant-be-copied/.
  74. Wang, C.K., Sim, V.Y., (2001), Exit strategies of venture capital-backed companies in Singapore, Venture Capital, 3(4), 337–358. https://doi.org/10.1080/13691060110060664.
  75. Weking, J., Böttcher, T., Hermes, S., Hein, A., (2019), Does Business Model Matter for Startup Success? A Quantitative Analysis. Twenty-Seventh European Conference on Information Systems (ECIS 2019). Retrieved from: https://www.researchgate.net/publication/332986741_Does_Business_Model_Matter_for_Startup_Success_A_Quantitative_Analysis.
  76. Zhang, J., Gu, Q., (2021), Turning a curse into a blessing: Contingent effects of geographic distance on startup–VC partnership performance, Journal of Business Venturing, 36(4), 106108. https://doi.org/10.1016/j.jbusvent.2021.106108.
DOI: https://doi.org/10.2478/sues-2025-0009 | Journal eISSN: 2285-3065 | Journal ISSN: 1584-2339
Language: English
Page range: 86 - 112
Submitted on: Feb 1, 2024
Accepted on: May 1, 2024
Published on: Apr 17, 2025
Published by: Vasile Goldis Western University of Arad
In partnership with: Paradigm Publishing Services
Publication frequency: 4 issues per year

© 2025 Ana Milena Montesdeoca Breilh, Ondřej Dvouletý, published by Vasile Goldis Western University of Arad
This work is licensed under the Creative Commons Attribution 4.0 License.