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.
Year of publication: |
2002-10-15
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Authors: | Manigart, Sophie ; Lockett, Andy ; Meuleman, Miguel ; Wright, Mike ; Landstrm, Hans ; Bruining, Hans ; Desbrieres, Philippe ; Hommel, Ulrich |
Institutions: | Vlerick Business School |
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