Why Do European Venture Capital Companies Syndicate?
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.
|Keywords||financial diversification theory, motivation, resource-based theory, syndication, venture capital strategies|
|Publisher||Erasmus Research Institute of Management (ERIM)|
Manigart, S., Bruining, H., Lockett, A., & Meuleman, M.. (2002). Why Do European Venture Capital Companies Syndicate? (No. ERS-2002-98-ORG). Erasmus Research Institute of Management (ERIM). Retrieved from http://hdl.handle.net/1765/252