Investigation of the Relationship between Location and Success in Venture Capital Investments

There is a plethora of academic studies which explore the relationship between location and the likelihood of a successful outcome of venture capital investments. However, the vast majority of these studies are based in the United States. Moreover, the existing literature yielded contradicting findings. Some claim that the distance between venture capital and startup is a key factor in explaining the latter’s success. Others find that this is not necessarily the case. This thesis aims to contribute to the topic by investigating this relationship for the countries of Germany, Switzerland, Austria and The Netherlands. The empirical results suggest that the impact that location has in the probabilities of success of the startup is negligible.