Venture capital investment has become globalized in the business landscape. Scholars
have reported an increasing globalization trend in the VC industry, as measured by VC
investment across national borders (Wright et al., 2005). Aylward (1998) found that Asian
countries/economies (e.g., Singapore, Hong Kong, and India) largely sourced their venture funds internationally. Baygan (2000) demonstrated that European countries experienced increases of cross-border VC flow. Aizenman & Kendall (2008) found that the number/volume of VC deals with international participation has increased in recent years. Finally, according to the Deloitte Touche Tohmatsu 2009 Global Venture Capital Survey, 52% of VCs already invest outside their home countries (Deloitte, 2009). Researchers also examine mechanisms behind this globalization trend: Guler & Guillen (2010) analyze the influence of recipient countries’ institutions on U.S. VC firms’ international investment decision. Aizenman & Kendall analyze the determinants of global VC flow using the gravity model framework. My two studies, both of which examine determinants and patterns of VC investment globalization, are positioned in this stream of research.