Title: Measurement of co-agglomeration degree and spatial scale of venture capitalists and new firms in Beijing based on the DO index

Authors: Jun Li; Ruishan Hu

Addresses: Business School of Anhui University of Technology, 1530 Maxiang Road, Ma'anshan, Anhui, 243032, China ' Beijing Eleven-Dimensional Thoth Space Consulting Co., Ltd., 502, Door 3, Building 9, Qingta Dongli, Fengtai District, Beijing, 100141, China

Abstract: To measure the co-agglomeration degree and spatial scale of venture capitalists (VCs) and new firms (investees), the Duranton and Overman index (DO index), based on distance-based K_d function to determine the distribution of bilateral distances between firms, is introduced to calculate the co-agglomeration degree and spatial scale of VCs and investees. Data from 7,451 rounds of financing deals in Beijing, China, during 2010-2019 was used. Results show the highest frequency of distances between VCs and investees falls in 10 km-20 km. VCs and investees in the start-up stage have higher co-agglomeration degree and smaller spatial scale than those in the growth stage. Governmental VCs and investees have higher co-agglomeration degree and smaller spatial scale than foreign VCs. The difference in the co-agglomeration degree of governmental VCs and investees in different stages is greater than those of foreign and private VCs. Heterogeneity of the co-agglomeration of VCs and investees within different cities needs further investigation.

Keywords: venture capitalist; new firm; co-agglomeration degree; the spatial scale of co-agglomeration; DO index.

DOI: 10.1504/IJMED.2025.147339

International Journal of Management and Enterprise Development, 2025 Vol.24 No.3, pp.227 - 248

Received: 22 May 2024
Accepted: 13 Oct 2024
Published online: 14 Jul 2025 *

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