Prior ties, investor role, and venture capital syndication

Jing Wu (), He Li (), Ling Liu () and Yun Xu ()
Additional contact information
Jing Wu: Southwestern University of Finance and Economics
He Li: Clemson University
Ling Liu: Southwestern University of Finance and Economics
Yun Xu: Southwestern University of Finance and Economics

Small Business Economics, 2021, vol. 56, issue 4, No 10, 1449-1459

Abstract: Abstract Prior literature recognized the importance of members’ prior ties on venture capital (VC) syndicated investments and uncovered investors’ different roles, in separate streams of research. This study bridges these two relevant but disjoint streams by examining how different roles’ prior ties affect VC syndicated investments. We consider the difference between leaders and followers, as well as their prior ties to the VC network and to the target investee. Our empirical analysis of the Chinese VC market demonstrates that VC investors’ prior ties have stronger influences for followers in VC syndicate formation than those for leaders. This research sheds lights on the understanding of different mechanisms of VC syndicate formation for different roles.

Keywords: Venture capital syndicate; Formation; Status cues; Information cues; Role; Social network; D74; G24; L24; L26; O33 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://link.springer.com/10.1007/s11187-019-00251-9 Abstract (text/html)
Access to full text is restricted to subscribers.

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:kap:sbusec:v:56:y:2021:i:4:d:10.1007_s11187-019-00251-9

Ordering information: This journal article can be ordered from
http://www.springer. ... 29/journal/11187/PS2

DOI: 10.1007/s11187-019-00251-9

Access Statistics for this article

Small Business Economics is currently edited by Zoltan J. Acs and David B. Audretsch

More articles in Small Business Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().