Marcelo Guzella , Felipe Buchbinder , Verônica Santana
{"title":"Venture capital investment in Latin America: The role of experience, distances, and network features","authors":"Marcelo Guzella , Felipe Buchbinder , Verônica Santana","doi":"10.1016/j.ememar.2024.101145","DOIUrl":null,"url":null,"abstract":"<div><p>We investigate the determinants of Venture Capital (VC) firms' activity in Latin America. Using more than 10 thousand funding rounds from 2002 to 2020, we found that the status of the firm determines more frequent and larger deals. Non-redundant connections increase the odds of investing, but redundant ones explain larger amounts. Younger firms participate in more deals, but mature firms invest larger amounts. Geographic proximity explains more investments, but institutional differences (regulatory quality and rule of law) explain larger rounds. We show that forecasting models with those features are useful for asset allocation and investment promotion.</p></div>","PeriodicalId":47886,"journal":{"name":"Emerging Markets Review","volume":"60 ","pages":"Article 101145"},"PeriodicalIF":5.6000,"publicationDate":"2024-05-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Emerging Markets Review","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S1566014124000402","RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}
引用次数: 0
Abstract
We investigate the determinants of Venture Capital (VC) firms' activity in Latin America. Using more than 10 thousand funding rounds from 2002 to 2020, we found that the status of the firm determines more frequent and larger deals. Non-redundant connections increase the odds of investing, but redundant ones explain larger amounts. Younger firms participate in more deals, but mature firms invest larger amounts. Geographic proximity explains more investments, but institutional differences (regulatory quality and rule of law) explain larger rounds. We show that forecasting models with those features are useful for asset allocation and investment promotion.
期刊介绍：
The intent of the editors is to consolidate Emerging Markets Review as the premier vehicle for publishing high impact empirical and theoretical studies in emerging markets finance. Preference will be given to comparative studies that take global and regional perspectives, detailed single country studies that address critical policy issues and have significant global and regional implications, and papers that address the interactions of national and international financial architecture. We especially welcome papers that take institutional as well as financial perspectives.
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
