Spatial Proximity in Venture Capital Investments and Assets Intangibility

Abstract

This study investigates the investment distance between Venture Capital funds (VCs) and their investable ventures focusing on the relevance of intangible assets. We find that investees with a higher level of intangible assets in their balance sheet receive VC finance from more proximate VC funds. However, patents, reflecting the economic value of intangibles, mitigate this spatial proximity in both tech and non-tech sectors. Moreover, the positive effects of patents on investment distance are stronger for younger VCs. On the other hand, the number of registered trademarks is only affecting investment distance for non-tech investees which are at the seed stage.

Metadata

Item Type:	Proceedings Paper
Authors/Creators:	Cai, X. Amini, S. Wilson, N. https://orcid.org/0000-0001-5250-9894
Copyright, Publisher and Additional Information:	This is an author produced version of a conference paper published in Proceedings of World Finance Conference 2022.
Dates:	Accepted: 1 August 2022 Published: 3 August 2022
Institution:	The University of Leeds
Academic Units:	The University of Leeds > Faculty of Business (Leeds) > Accounting & Finance Division (LUBS) (Leeds)
Funding Information:	Funder Grant number ESRC (Economic and Social Research Council) ES/W010259/1 ESRC (Economic and Social Research Council) Not Known
Depositing User:	Symplectic Publications
Date Deposited:	31 Jul 2025 14:00
Last Modified:	31 Jul 2025 14:00
Published Version:	https://www.world-finance-conference.com/site/file...
Status:	Published
Publisher:	World Finance Conference
Open Archives Initiative ID (OAI ID):	oai:eprints.whiterose.ac.uk:229864

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Spatial Proximity in Venture Capital Investments and Assets Intangibility

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