Entrepreneurs who contribute to economic growth have looked to venture capital firms as a major source of financing. This thesis tests the significance of explanatory variables for investment in venture capital at both the national and regional levels. The explanatory variables predicting national new investment in venture capital include capital pins tax rates, stock market pricing, risk premiums, and regulations on pension fund investment. Further, this thesis examines whether the location of venture capital funds depends on research and development funds at universities within a state, state corporate income tax burdens, state unemployment rates, and average weekly earnings within a state
