Emanuele Teti, Alberto Dell’Acqua, Ada Bovsunovsky
{"title":"Diversification and size in venture capital investing","authors":"Emanuele Teti, Alberto Dell’Acqua, Ada Bovsunovsky","doi":"10.1007/s40821-024-00258-7","DOIUrl":null,"url":null,"abstract":"<p>We empirically examine the interaction between different types of diversification (stage, industry, geography) and portfolio size, i.e., number of investee companies, in explaining venture capital (VC) funds’ returns. We study a comprehensive dataset of 422 liquidated US VC funds to conduct multiple analyses in a large timeframe. The results show that large portfolio size and diversification in a limited number of industries contribute positively to fund performance, while stage and geographical diversification have no significant relationship with returns. Our findings can support both the practice of VC portfolio management in reaching better capital allocation efficiency and policymakers in providing guidance for VC fund development programmes backed by sovereign and international institutions.</p>","PeriodicalId":51741,"journal":{"name":"Eurasian Business Review","volume":null,"pages":null},"PeriodicalIF":4.0000,"publicationDate":"2024-02-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Eurasian Business Review","FirstCategoryId":"91","ListUrlMain":"https://doi.org/10.1007/s40821-024-00258-7","RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"BUSINESS","Score":null,"Total":0}
引用次数: 0
Abstract
We empirically examine the interaction between different types of diversification (stage, industry, geography) and portfolio size, i.e., number of investee companies, in explaining venture capital (VC) funds’ returns. We study a comprehensive dataset of 422 liquidated US VC funds to conduct multiple analyses in a large timeframe. The results show that large portfolio size and diversification in a limited number of industries contribute positively to fund performance, while stage and geographical diversification have no significant relationship with returns. Our findings can support both the practice of VC portfolio management in reaching better capital allocation efficiency and policymakers in providing guidance for VC fund development programmes backed by sovereign and international institutions.
期刊介绍：
The Eurasian Business Review (EABR) publishes articles in Industrial Organization, Innovation and Management Science.
In particular, EABR is committed to publishing empirical articles which provide significant contributions in the fields of the economics and management of innovation, industrial and business economics, corporate governance and corporate finance, entrepreneurship and organizational change, strategic management, accounting, marketing, human resources management, and information systems.
While the main focus of EABR is on Europe and Asia, papers in the fields listed above on any region or country are highly encouraged.
The Eurasian Business Review is one of the two official journals of the Eurasia Business and Economics Society (EBES) and is published quarterly.
京公网安备 11010802042870号
京ICP备2023020795号-1
分享
求助内容：
应助结果提醒方式：
扫码关注我们
