Birds of a feather or celebrating differences? The formation and impacts of venture capital syndication

Qianqian Du

Journal of Empirical Finance, 2016, vol. 39, issue PA, 1-14

Abstract: This paper examines the preferences of venture capital firms for syndication partners and the impacts of syndication partners on venture capital firms. Co-investing with similar partners may reduce transaction costs, but it may also limit opportunities for learning. Based on U.S. data on venture capital investments, I find that, on average, venture capital firms are more likely to syndicate with partners that are similar to them, consistent with prior theoretical predictions. In the long term, however, venture capital firms may benefit more from co-investing with partners that are different from them.

Keywords: Venture capital; Syndication formation; Impacts of syndication; Costs and benefits of similarity (search for similar items in EconPapers)
JEL-codes: G24 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0927539816301116
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:empfin:v:39:y:2016:i:pa:p:1-14

DOI: 10.1016/j.jempfin.2016.09.001

Access Statistics for this article

Journal of Empirical Finance is currently edited by R. T. Baillie, F. C. Palm, Th. J. Vermaelen and C. C. P. Wolff

More articles in Journal of Empirical Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().