Urban and industrial diffusion mechanisms in China's venture capital investments
DUAN Liaoliao1, SUN Weizeng2, ZHENG Siqi1,3
1. Hang Lung Center for Real Estate, Department of Construction Management, Tsinghua University, Beijing 100084, China; 2. School of Economics, Central University of Finance and Economics, Beijing 100081, China; 3. China Future City Lab, Department of Urban Studies and Planning, Massachusetts Institute of Technology, Cambridge 02139, USA
Abstract：Venture capital plays an important role in advancing the development of high-tech industries for promoting industrial and economic growth. However, venture capital is not evenly distributed among various regions and industries in China, which inhibits the development of backward regions and industries. Micro-data related to China's venture capital investments are analyzed to construct an investment decision-making model to analyze the factors affecting venture capital investments. The results show that the industrial and urban experience of the venture capital, the maturity of the start-up companies, and the industrial and urban experience of the joint investors all significantly increase the investment probability. In addition, the venture capital experience and the start-up company maturity are found to strongly influence the venture capital's entry into new cities and new industries, while the joint investors' experience does not have much effect.
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