Spread, Scope, and Scale in Venture Capital Globalization: A Clustered Globalization Model

This article reviews some recent developments in the literature on venture capital (VC) globalization. It then develops a conceptual model addressing the spread, scope, and scale of globalization in this critical industry that is central to innovation and entrepreneurship. It proposes the clustered globalization model as a unifying construct that brings together the spread, scope, and scale of VC globalization, and provides a baseline framework for thinking about globalization in the VC industry. In clustered globalization, the geographical spread of VC will continue but not in a "world is flat" sense; rather the emergence of more clusters worldwide is expected, and the organizational linkages between them will consist of loosely coupled VC firm families rather than integrated VC multinationals.