AN EMPIRICAL ANALYSIS: VENTURE CAPITAL CLUSTERS AND FIRM MIGRATION
Regions and states utilize venture capital forums to raise the profiles of youthful, potentially high-growth firms located within their boundaries. They aim to help organizations raise capital, to widen professional networks and to stimulate regional development. As a contribution toward determining the success of the forum concept, the Florida venture forum was studied. This paper follows those companies who received funding subsequent to participating in the forum during the period 1997â2003; data is drawn from the forum and public records. Funding profiles are built up for successful participants and the funding entities. A secondary profile, post-funding, is developed that examines the role the funding agent plays in determining whether the funded company remains or migrates from its original location. The finding of this paper is that a significant number of funded entities are located within venture capital cores or clusters. The paper shows that funded companies are younger than non-funded companies, more likely to be acquired and move from their original location. The paper also shows that the participant companies that were acquired achieve an exit strategy by migrating out of the state of Florida.
Venture capital clusters, firm migration, relocation theory, entrepreneurship, venture forum
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