The Power of Proximity: The Impact of Proximity Between Early-Stage Investors and Universities

Early-stage investors and universities are crucial stakeholders in entrepreneurial ecosystems, yet their combined impact remains underexplored. This paper examines how the proximity between early-stage investors and universities affects the founding rate and success of affiliated startups. The analysis utilizes data from the Crunchbase 500 list for Germany. Findings indicate a positive correlation between the proximity of early-stage investors and universities with higher success rates and founding rates of affiliated startups. However, the results show varying dynamics and partial statistical significance, suggesting different implications for small versus large universities. Should these tendencies be confirmed with a more extensive dataset, the findings could have practical implications for early-stage investors and universities, tailored to their size.