In recent years,China's venture capital industry has developed rapidly,and the number and amount of venture capital events have significantly increased.From a spatial perspective,China's venture capital industry has obvious geographical uneven distribution.Venture capital institutions and venture capital events are concentrated in first-tier cities and developed provinces.Whether the uneven spatial distribution will affect the efficiency of venture capital has caused some discussion,and domestic studies about the impact of spatial factors on venture capital are also increasing.This paper attempts to analyze the effect of spatial distance on China's venture capital investment decision-making and investment performance,what factors will influence this effect and how this effect changes over time.This paper collects 32,547 investment event data from the beginning of 2001 to the end of 2017,and puts forward 9 hypotheses based on the characteristics of venture capital institutions,the characteristics of venture investment events and the characteristics of invested enterprises.Econometric methods are used to regress the model and verify the hypotheses.The results show that the farther the spatial distance leads to the higher the information asymmetry between the venture capital institution and the invested enterprise,the higher investment cost and the lower likelihood of making an investment decision.The impact of spatial distance on venture capital decision-making will also be affected by the amount of investment and the concentration of industry in the region where the invested enterprise is located.The spatial distance has no obvious effect on venture capital exit performance.With the development of communication technology and the convenience of transportation,the negative impact of spatial distance on risk investment decisions is decreasing. |