Venture capital and the internationalization of new technology-based ventures

International new ventures, young companies that derive significant revenues from foreign sources, are often technology-based. The age and industry demographics of these "born global" companies are similar to those of companies funded by venture capital (VC). This dissertation examines the relationship between the receipt of VC and the internationalization of young technology ventures. Three related papers address the questions: (1) what mechanisms do VC providers use to mitigate the agency risks of portfolio company internationalization; (2) does the receipt of corporate VC relate to more intense internationalization; and (3) does the performance of new technology-based companies that internationalize differ from that of similar ventures that do not?; In Chapter 1, I examine 358 VC-backed technology companies founded from 1997-2003 for differences in round size, round interval and syndication related to internationalization. The findings show that average round and syndicate size do not vary with internationalization, suggesting that other factors related to internationalization may offset the agency issues resulting from information asymmetries. The finding of greater round intervals for internationalized ventures may indicate limits to this method of monitoring or the selection of higher quality ventures whose international ambitions result in fewer agency problems.; In Chapter 2, I utilize resource-based theories to investigate the relationship between receipt of corporate VC (CVC) and international intensity. This study of 268 new technology-based ventures finds that those receiving CVC are larger, older and better funded than ventures not similarly funded. Controlling for these differences, a positive and significant relationship exists between the receipt of CVC and higher percentages of revenues from foreign sources. Neither corporate international diversity nor prior international investing experience influences this relationship.; Chapter 3 examines the relationship between internationalization and performance for young private ventures. This study of the initial public offerings of 184 VC-backed new ventures from 1997-2003 finds that highly internationalized ventures execute their public offerings later and receive lower valuations than do solely domestic ventures. This suggests that investor perceptions of internationalization agency risks outweigh the perceived benefits of enhanced resource endowments and growth options due to foreign activities.