Venture capitalists' decision to syndicate
Manigart, Sophie Lockett, Andy Meuleman, Miguel Wright, Mike Landström, Hans Bruining, Hans Desbrières, Philippe Hommel, Ulrich
Manigart, Sophie
Lockett, Andy
Meuleman, Miguel
Wright, Mike
Landström, Hans
Bruining, Hans
Desbrières, Philippe
Hommel, Ulrich
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Publication Type
Journal article with impact factor
Editor
Supervisor
Publication Year
2006
Journal
Entrepreneurship: Theory and Practice
Book
Publication Volume
30
Publication Issue
2
Publication Begin page
131
Publication End page
153
Publication NUmber of pages
Collections
Abstract
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.
Research Projects
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Journal Issue
Keywords
Corporate Finance, Mergers & Acquisitions