Syndication bridges the gap: German VC investments not limited by distance.
The study looked at whether Venture Capital in Germany is influenced by location. They analyzed over 300 investments made in Germany from 2004 to 2005. The researchers found that how far away a VC company is from the business they invest in doesn't really matter. When investors team up, it helps bridge the distance gap, especially if one investor is close to the business. Overall, there isn't strong evidence of a lack of funding for new and innovative companies in different regions of Germany.