Venture Capital Coordination in Syndicates, Corporate Monitoring, and Firm Performance

Jun-Koo Kang, Yingxiang Li and Seungjoon Oh

Journal of Financial Intermediation, 2022, vol. 50, issue C

Abstract: This paper examines how the coordination of venture capital (VC) investors in their syndicates, as measured by their geographic concentration, affects firm performance and ex ante contractual terms. Using the introduction of new airline routes between the locations of VC investors as a shock to their coordination costs, we find that firms with geographically concentrated VC investors are more likely to exit successfully than other firms. Geographically proximate VC investors are also more likely to form syndicates in follow-up rounds and to use less intensive staged financing and fewer convertible securities.

Keywords: Venture capital; Geographic concentration; Coordination; Monitoring; Exit; Staged financing (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jfinin:v:50:y:2022:i:c:s1042957322000018

DOI: 10.1016/j.jfi.2022.100948

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