Global Connections, Local Impacts: The Enduring Effects of International Syndication Experience on Venture Capital Investments

Suting Hong, Massimiliano Guerini and Haemin Dennis Park

Entrepreneurship Theory and Practice, 2025, vol. 49, issue 6, 1710-1740

Abstract: We investigate how a domestic venture capital (VC) firm’s syndication experience with reputable foreign VC firms improves its likelihood of achieving successful exits for entrepreneurial firms that it subsequently funds. We identify two complementary theoretical mechanisms: (a) domestic VC firms can gain certification from reputable foreign VC firms that improves access to superior investment opportunities and (b) they can learn from reputable foreign VC firms to better select and nurture ventures. Furthermore, the positive impact of syndication experience is particularly pronounced in facilitating exits for portfolio companies in foreign countries. Our findings highlight the enduring benefits that domestic VC firms gain from partnerships with reputable foreign VC firms.

Keywords: venture capital; international syndication; reputation; foreign exit (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:sae:entthe:v:49:y:2025:i:6:p:1710-1740

DOI: 10.1177/10422587251362900

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