Impact Of Cross-border Venture Capital Strategy On Venture Capital Performance

Recently,the trend of cross-border venture capital is obvious.The emerging country market led by China has received extensive attention from international venture capital.In the process of cross-border venture capital Investment,due to the geographical and cultural distance with the host country,institutions face “Liability of Foreignness” in information and resources,and will adopt certain investment strategies to deal with the uncertainty.Scholars believe there are three most common cross-border venture capital strategies,namely,specialized investment,syndication and staged financing.This paper explores the impact of cross-border venture capital strategy on investment performance from three aspects.At the same time,on the basis of confirming the impact of cross-border venture capital strategy on performance,this paper consider the culture distance in the study of impact of investment strategies on investment performance.This paper collects 2472 cross-border venture capital samples from the beginning of 2011 to the middle of 2018,proposes 8 hypotheses,and conducts empirical research.The empirical results show that industry-specific investment,syndication and staged financing have a significant role in promoting crossborder venture capital performance.Adopting industry-specific investment,syndication and staged financing strategies can significantly improve investment performance.The more local partners and staged financing rounds,the greater the likelihood that a cross-border venture will exit successfully.In addition,this paper finds that in the case of large cultural distance,industry specialization investment,syndication and staged financing strategies can significantly improve the performance of cross-border venture capital investment,and in the case of small cultural distance,only a staged financing strategy can significantly have a positive impact on investment performance.This paper confirms the significant difference in the impact of cross-border venture capital strategy on investment performance under different cultural distance.The greater the cultural distance between cross-border venture capital institutions and the countries where venture enterprises are located,the larger the impact of their investment strategies on investment performance.