Doing It Not Alone: Antecedents, Dynamics, and Outcomes of Venture Capital Syndication

Venture Capital Syndication: Synthesis and future directions

“…The existing research on syndication motivation has focused on identifying the direct effects that VCs seek from syndication. These effects have been found to fall into categories such as risk reduction, deal flow generation, deal selection and value‐adding (De Clercq and Dimov 2010; Lockett and Wright 2001; Manigart et al . 2006).…”

“…While reviews exist of specific aspects of syndication, such as contracting (Tykvova 2007), motivations (e.g. Lockett and Wright 2001;Manigart et al 2006) and the strategic approaches of VC firms (De Clercq and Dimov 2010), these contributions have focused on their specific areas, and the understanding of aspects covered by the research as a whole is dispersed among individual contributions. Consequently, the research lacks an integrated view on syndication that would allow us to assess what is known and where further contributions are needed.…”

How do the network structures of lead investors affect the following of distant strangers? Evidence from Chinese equity crowdfunding

“…According to Lin's social capital theory, relatively high-status actors tend to connect with other actors who also have relatively high status in other areas (Lin, 2005). In practice, central investors tend to choose players with similar positions rather than peripheral investors (Chung et al, 2000;De Clercq & Dimov, 2010;Gulati & Gargiulo, 1999;Keil et al, 2010;Meuleman et al, 2009). Hence, central actors have more central partners in their networks.…”

“…Although above findings have confirmed the effect of networks on information choice, the observed relationships consist of investor-entrepreneur dyads. In the context of traditional venture capital, the syndication networks between lead investors and their followers have been confirmed to influence following behavior (De Clercq & Dimov, 2010;Fund et al, 2008). However, the extant literature on ECF pays little attention to the syndication ties formed by crowd funders (Mochkabad & Volkmann, 2018).…”

Are Distances Barriers to Sustainability for Venture Capital Syndication?

“…For example, from the perspective of finance theory, VC syndication has been viewed as a means to share risk and avoid uncertainty through investment portfolio diversification [22]; from the knowledge-based view, internal knowledge development and external knowledge accessed through inter-firm relationships were crucial drivers of VC syndication [23]; and from the resource-based view, VC syndication enables access to complementary assets, financial resources, and network resources [24,25]. Therefore, the motives of VC syndication are generally considered as corporate actions of reducing risks, obtaining resources, accessing future deals, and adding value [8,22,26]. Despite the growing attention and fruitful literature on the antecedents of VC syndication, there are still potential gaps left for overlooked factors that may influence VC syndication.…”