Are California venture capitalists the best venture capitalists?
We test if California VCs significantly outperform VCs from other US states. We additionally test in which instances California VCs outperform the other VC concentrated states of Massachusetts and New York. We find that VCs from California, Massachusetts, and New York have significantly greater prob...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Taylor & Francis Group
2022-12-01
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| Series: | Cogent Economics & Finance |
| Subjects: | |
| Online Access: | https://www.tandfonline.com/doi/10.1080/23322039.2022.2150132 |
| _version_ | 1797987995110866944 |
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| author | Tyler Hull Luna Y. Goldblatt |
| author_facet | Tyler Hull Luna Y. Goldblatt |
| author_sort | Tyler Hull |
| collection | DOAJ |
| description | We test if California VCs significantly outperform VCs from other US states. We additionally test in which instances California VCs outperform the other VC concentrated states of Massachusetts and New York. We find that VCs from California, Massachusetts, and New York have significantly greater probabilities of successfully exiting their investments than VCs from other states. Additionally, we show that California VCs are even more adept than VCs from Massachusetts and New York at 1. Early-stage investments, 2. Helping their entrepreneurial firms receive future rounds of financing, and 3. Helping their backed entrepreneurial firms receive higher IPO valuations and achieve superior post-IPO accounting ratios. Additional results suggest that VCs from California, Massachusetts, and New York are not only adept at selecting firms in which they invest in and continue to invest in, but they also enhance the value of the firms they select by means of monitoring their investments. |
| first_indexed | 2024-04-11T07:57:00Z |
| format | Article |
| id | doaj.art-5899112b8a0c490a86d252fcfaa5bedc |
| institution | Directory Open Access Journal |
| issn | 2332-2039 |
| language | English |
| last_indexed | 2024-04-11T07:57:00Z |
| publishDate | 2022-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Economics & Finance |
| spelling | doaj.art-5899112b8a0c490a86d252fcfaa5bedc2022-12-22T04:35:54ZengTaylor & Francis GroupCogent Economics & Finance2332-20392022-12-0110110.1080/23322039.2022.2150132Are California venture capitalists the best venture capitalists?Tyler Hull0Luna Y. Goldblatt1University of Massachusetts, Boston, Massachusetts, USAGettysburg College, Gettysburg, Pennsylvania, USAWe test if California VCs significantly outperform VCs from other US states. We additionally test in which instances California VCs outperform the other VC concentrated states of Massachusetts and New York. We find that VCs from California, Massachusetts, and New York have significantly greater probabilities of successfully exiting their investments than VCs from other states. Additionally, we show that California VCs are even more adept than VCs from Massachusetts and New York at 1. Early-stage investments, 2. Helping their entrepreneurial firms receive future rounds of financing, and 3. Helping their backed entrepreneurial firms receive higher IPO valuations and achieve superior post-IPO accounting ratios. Additional results suggest that VCs from California, Massachusetts, and New York are not only adept at selecting firms in which they invest in and continue to invest in, but they also enhance the value of the firms they select by means of monitoring their investments.https://www.tandfonline.com/doi/10.1080/23322039.2022.2150132venture capitalgeographyproximity |
| spellingShingle | Tyler Hull Luna Y. Goldblatt Are California venture capitalists the best venture capitalists? Cogent Economics & Finance venture capital geography proximity |
| title | Are California venture capitalists the best venture capitalists? |
| title_full | Are California venture capitalists the best venture capitalists? |
| title_fullStr | Are California venture capitalists the best venture capitalists? |
| title_full_unstemmed | Are California venture capitalists the best venture capitalists? |
| title_short | Are California venture capitalists the best venture capitalists? |
| title_sort | are california venture capitalists the best venture capitalists |
| topic | venture capital geography proximity |
| url | https://www.tandfonline.com/doi/10.1080/23322039.2022.2150132 |
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