Relocation to get venture capital: a resource dependence perspective
Publication typeArticle in academic journal
JournalEntrepreneurship: Theory and Practice
MetadataShow full item record
AbstractUsing a resource dependence perspective, we theorize and show that non-venture-capital-backed ventures founded in U.S. states with a lower availability of venture capital (VC) are more likely to relocate to California (CA) or Massachusetts (MA) — the two VC richest states — compared to ventures founded in states with a greater availability of VC. Moreover, controlling for self-selection, ventures that relocate to CA or MA subsequently have a greater probability of attracting initial VC compared to ventures that stay in their home state. We discuss the implications for theory, future research, and practice.
Knowledge Domain/IndustryAccounting & Finance