Date of Award
Doctor of Philosophy
This dissertation investigates the supply and demand components of Canadian venture capital investment. Four areas are addressed: (1) where venture capital firms and their investments are located, (2) investment specialization of firms in different urban markets, (3) the spatial pattern of portfolio firm industrial sector and funding stage characteristics and (4) the economic impact of portfolio firms. These investigations are based on data gathered from industrial directories, surveys of both venture capitalists and their investments, and an online database of export oriented firms.;Venture capital investors are highly concentrated and regionally biased in their portfolio selections. Further, investors located in particular urban markets specialize in certain geographic regions, funding stages and industrial sectors. The resulting spatial patterns are the aggregate result of efforts to minimize uncertainty and reduce the inherent risk of ventures. Investigation of the performance and economic impacts of venture backed firms showed that venture capitalists usually invest in the elite of small and medium sized companies. These firms typically have above average rates of growth, and strong financial positions. They commit relatively large amounts of capital to research and development activity, and are highly export oriented. As a result of their rapid growth, they generate many new employment opportunities.
McNaughton, Rod B., "An Economic Geography Of Venture Capital Investment In Canada" (1989). Digitized Theses. 1770.