Conditions for Venture Capital Investments – A Fuzzy Set Analysis

This study investigates country-market differences in venture capital investment activities. Based on data from 57 countries, the authors employ a fuzzy set analysis to examine configurations of factors that stimulate venture capital activities. The results from this study contribute to a better understanding of how factors regarding regulatory issues, venture capital demand, and venture capital supply affect venture capital activity. The findings from this research help resolve some of the contradictory findings from previous research and indicate two different constellations of factors leading to venture capital investment activities. Based on the findings from this study, the authors derive implications for researchers and managers.