The venture capital (VC) industry, which has traditionally been considered a local business, becomes increasingly internationalized with cross-border investments accounting for 31 percent in 2020. This attracted scholars from multiple disciplines, who have placed a strong focus on foreignness-related performance consequences. In our study we adopt a novel perspective on VC firms’ motives to venture abroad, investigating the reverse performance relationship. Grounded in performance feedback theory, we hypothesize VC firms’ financial performance shortfalls below aspiration levels trigger a process of problemistic search. This search leads to an increased likelihood of cross-border investments and greater distance between VC firm and investee countries, both in terms of psychic and geographic distance. We find strong support for our hypotheses and conclude underperforming VC firms are pushed out of their home markets into more distant host markets. Our study complements the scarce research on the effects of performance feedback on firm internationalization and extends it to the VC industry. In addition, we contribute to the growing body of knowledge on international VC and provide stakeholders along the venture capital financing process with insights into their business partners’ motives to venture abroad.