Relocation to get venture capital : a resource dependence perspective

Aldrich H. E.; Allison P. D.; Amezcua A. S.; Amit R.; Berger A. N.; Best M. H.; Bradley S. W.; Brouwer A. E.; Buenstorf G.; Carpenter R. E.; Carpenter R. E.; Carroll G. R.; Chen H.; Cumming D.; Cumming D.; Dahl M. S.; Deloof M.; Devigne D.; Ebben J.; Feldman M. P.; Folta T. B.; Galbraith C. S.; Gilbert B. A.; Gompers P. A.; Gupta A. K.; Hallen B. L.; Hecker D. E.; Heckman J. J.; Holmes R. M.; Isabella L. A.; Isenberg D.; Knoben J.; Knoben J.; Knoben J.; Kulchina E.; Lee C.; Levine D. I.; Li K.; Michelacci C.; Mäkelä M. M.; Neumark D.; NVCA; NVCA; Paglia J. K.; Pfeffer J.; Pfeffer J.; Pfeffer J.; Plummer L. A.; Popov A.; Puri M.; Sapienza H. J.; Sapienza H. J.; Schutjens V.; Shane S.; Sofie De Prijcker; Sophie Manigart; Sorenson O.; Stam E.; Stuart T.; Tom Vanacker; Tsvetkova A.; Vanacker T.; Vanacker T. R.; Veroniek Collewaert; Welbourne T. M.; Welter F.; Weterings A.

Relocation to get venture capital : a resource dependence perspective

Abstract

This is the author accepted manuscript. The final version is available from SAGE via the DOI in this record.Using a resource dependence perspective, we theorize and show that non-venture-capital-backed ventures founded in U.S. states with a lower availability of venture capital (VC) are more likely to relocate to California (CA) or Massachusetts (MA)—the two VC richest states—compared to ventures founded in states with a greater availability of VC. Moreover, controlling for self-selection, ventures that relocate to CA or MA subsequently have a greater probability of attracting initial VC compared to ventures that stay in their home state. We discuss the implications for theory, future research, and practice