The Determinants of Venture Capital Portfolio Size: Empirical Evidence*

2006/04/10 by Douglas J. Cumming, Douglas J. Cumming · 2 citations
Business, Management and Accounting · Economics, Econometrics and Finance · #Private Equity and Venture Capital #Corporate Finance and Governance #Community Development and Social Impact

paper · doi:10.1086/500670

Abstract

This paper explores factors that affect portfolio size among a sample of venture capital financing data from 214 Canadian funds. Four categories of factors affect portfolio size: (1) the venture capital funds' characteristics, including the type of fund, fund duration, fund-raising, and the number of venture capital fund managers; (2) the entrepreneurial firms' characteristics, including stage of development, technology, and geographic location; (3) the nature of the financing transactions, including staging, syndication, and capital structure; and (4) market conditions. The data further indicate decreasing returns to scale in the number of entrepreneurial firms financed by a venture capital fund.

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• Venture capital activities under uncertainty: US and UK investors behavior. [europepmc]

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