Venture capitalists' Decision to Syndicate
Author
Summary, in English
Financial theory, access to deal flow, selection, and monitoring skills are used to explain syndication in venture capital firms in six European countries. In contrast with U.S. findings, portfolio management motives are more important for syndication than individual deal management motives. Risk sharing, portfolio diversification, and access to larger deals are more important than selection and monitoring of deals. This holds for later stage and for early stage investors. Value adding is a stronger motive for syndication for early stage investors than for later stage investors, however. Nonlead investors join syndicates for the selection and value-adding skills of the syndicate partners.
Publishing year
2006
Language
English
Pages
131-153
Publication/Series
Entrepreneurship Theory and Practice
Volume
30
Issue
2
Links
Document type
Journal article
Publisher
Wiley-Blackwell
Topic
- Social Sciences Interdisciplinary
- Business Administration
- Economics and Business
Status
Published
ISBN/ISSN/Other
- ISSN: 1042-2587