Diaspora Concentration and the Venture Investment Impact of Remittances

International business (“IB”) research has developed theory and preliminary evidence suggesting that remittances from overseas immigrant diasporas enhance home-country venture funding access, particularly in developing countries where a dearth of formal institutional protections deter other foreign investors. I extend this research with theory and evidence linking the geographic concentration of immigrant diasporas abroad to the magnified venture investment impact of their remittances back home. Analyses of remittances to 50 developing counties from 2002 to 2007 show that the venture investment impact of remittances may be completely nullified when coming from geographically-dispersed immigrant diasporas. Diaspora concentration abroad facilitates more effective discovery of venture opportunities back home.