Business, Management and Accounting
7 years ago

Ventures in VC-poor states relocating to attract more funding in CA and MA.

Entrepreneurship Theory and Practice
Relocation to Get Venture Capital: A Resource Dependence Perspective
Sofie De Prijcker, Sophie Manigart, Veroniek Collewaert, Tom Vanacker

Paper Summary

Ventures in states with less venture capital are more likely to move to California or Massachusetts, where there is more venture capital available. Ventures that relocate to these states have a higher chance of getting initial venture capital funding compared to those that stay in their home state.

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