In this paper a model of the spatial development of the American venture capital industry is provided. The investment preferences for both publicly and privately owned venture capital firms for the period 1970 - 85 are examined in light of this model. A median polish analysis of the investment preferences, for firms located in the sixteen largest venture capital centers, reveals a high level of regional parochialism in investment. Differences in risk aversion and industry choice are also found both by city type and by firm type. Implications for local development are discussed.
To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.