Venture capitalists' Decision to Syndicate

Research output: Contribution to journalArticle

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.

Details

Authors
  • S Manigart
  • A Lockett
  • M Meuleman
  • M Wright
  • Hans Landström
  • H Bruining
  • P Desbrieres
  • U Hommel
Organisations
Research areas and keywords

Subject classification (UKÄ) – MANDATORY

  • Social Sciences Interdisciplinary
  • Business Administration
  • Economics and Business
Original languageEnglish
Pages (from-to)131-153
JournalEntrepreneurship Theory and Practice
Volume30
Issue number2
Publication statusPublished - 2006
Publication categoryResearch
Peer-reviewedYes