Martí Pellón, JoséTrucci Bruschi, Gerardo Raúl2023-06-172023-06-172020https://hdl.handle.net/20.500.14352/9083Research found that venture capital financing has a positive effect on firms’growth. Part of this positive impact is explained by the value added, i.e., monitoring and strategic advice, provided by venture capital entities (VCEs, hereafter) to their portfolio companies. Literature found that spatial proximity between VCE and invested firms facilitates the interchange of information, and thus the execution of value added activities provided by VCEs. In this work, we investigated whether geographical distance, measured in both kilometers and travel time between portfolio companies and their lead investor, affects performance. We base our analysis on a sample of 1035 firms observed between 1996 and 2018. The results of our difference-in-differences econometric estimation indicate that distance matters for companies invested by private venture capital entities: on average, firms that are closer to their lead investor present a higher growth in terms of assets when compared to the most distant ones.engmaster thesishttps://www.ucm.es/master-finanzas-empresa/open accessG14G24L20L26Venture capitalSmall and medium enterprisesFinancial and non-financial resourcesValue addedMonitoring costsGrowthPerformanceDistanceGeographic proximity.EmpresasFinanzas5311 Organización y Dirección de Empresas