6533b7dcfe1ef96bd127303e
RESEARCH PRODUCT
Why Do European Venture Capital Companies Syndicate?
S. ManigartJ. BruiningA. LockettM. Meulemansubject
jel:L2jel:M10jel:Mjel:G24financial diversification theory motivation resource-based theory syndication venture capital strategiesdescription
Financial theory, resource-based theory and access to deal flow are used to explain syndication practices among European venture capital (VC) firms. The desire to share risk and increase portfolio diversification is a more important motive for syndication than the desire to access additional intangible resources or deal flow. Access to resources is, however, more important for non-lead than for lead investors. When resource-based motives are more important, the propensity to syndicate increases. Syndication intensity is higher for young VC firms and for VC firms, specialised in a specific investment stage. Finally, syndication strategies are similar across European countries, but differ from North American strategies.
| year | journal | country | edition | language |
|---|---|---|---|---|
| 2002-11-04 |