Why do European Venture Capital Companies syndicate?

Sophie Manigart and Miguel Meuleman

Finance from University Library of Munich, Germany

Abstract: Financial theory, resource-based theory and access to deal flow are used to explain syndication practices among European venture capital (VC) firms. The desire to share risk and increase portfolio diversification is a more important motive for syndication than the desire to access additional intangible resources or deal flow. Access to resources is, however, more important for non-lead than for lead investors. When resource-based motives are more important, the propensity to syndicate increases. Syndication intensity is higher for young VC firms and for VC firms, specialised in a specific investment stage. Finally, syndication strategies are similar across European countries, but differ from North American strategies.

JEL-codes: G (search for similar items in EconPapers)
Pages: 38 pages
Date: 2002-10-22
Note: Type of Document - ; pages: 38
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Citations: View citations in EconPapers (23)

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https://econwpa.ub.uni-muenchen.de/econ-wp/fin/papers/0210/0210006.pdf (application/pdf)

Related works:
Working Paper: Why Do European Venture Capital Companies Syndicate? (2002)
Working Paper: Why do European Venture Capital Companies syndicate? (2002)
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Persistent link: https://EconPapers.repec.org/RePEc:wpa:wuwpfi:0210006

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