Interurban Variation in Venture Capital Investment Characteristics

Abstract

This paper describes interurban variations in venture capital investment characteristics. Regional, funding, and industrial sector preferences are characterised for ten of the most active venture capital centres. Investment data document the importance of these centres as importers and exporters of venture capital and shows interurban market linkages. An attempt is made to describe these linkages by a traditional gravity model. Poor fits result in the adoption of an alternative technique; the median polish that provides a more detailed description of venture capital spatial investment behaviour.