Dynamics of Venture Capital Syndication: Perspective of Information

Cross-border venture capitals (CBVCs) are increasingly prevailing in recent decades, inter alia in emerging markets like China. The venture capital (VC) firms investing outside their home countries are faced with foreignness which is broadly regarded as liability. The primary aim of this article is to contribute to our understanding how foreignness affects VC’s strategy when entering emerging markets, particularly with respect to the foreignness originated from cultural distance. The data consist of over 5,000 CBVC deals taking place in China mainland from 1988 to 2016. Our empirical study shows that, with foreignness growing, it turns from liability into advantage in the context of CBVCs. We find an inverse U-shape relationship between foreignness and syndication, with VC firm’s reputation as the moderator. Besides, foreign VC firms establish local subsidiary when faced with foreignness, which serves as alternative to syndication. The key contribution of this article is that foreignness turns from liability into advantage in emerging markets, which exerts a curvilinear impact on the entry strategy of VC firms. This study advances the knowledge of foreignness and VC strategy, and sheds new light on entrepreneurial activities in emerging markets.

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“…The term “centrality” describes the density of syndication links that a firm maintains with different partners (cf. R. Chen & Qiu, 2019).…”

Section: Conclusion and Discussionmentioning

confidence: 99%

Going Abroad, Friends on Board: Cross-Border Venture Capital and Syndication Strategy in China

2021

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“…The structural hole index describes to which extent that the focal VCF bridges different tightly connected syndicates (c.f. Chen and Qiu (2019). To be specific, the structure hole index of focal VCF is measured as in Equation A.2…”

Section: Definition Of Control Variables In 51mentioning

confidence: 99%

“…Thus, Succes s i ( 0 , t − 1 ) Roun d i ( 0 , t − 1 ) denotes the “successful” exit rate of VCF i . The structural hole index describes to which extent that the focal VCF bridges different tightly connected syndicates (c.f. Chen and Qiu (2019). To be specific, the structure hole index of focal VCF is measured as in Equation A.2 where ∑ i ∑ j b ij ( k ) denotes the absolute structure hole index as defined by Burt (2000) and N denotes the number of VCFs ever syndicated during the 3-year window.…”

Section: Definition Of Control Variables In 51mentioning

confidence: 99%

Like Performance, Perfect Match: Role of Past Performance in Venture Capital Syndication

Qiu,

Liu,

Yang

2023

SAGE Open

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Syndication among venture capital firms (VCFs) is increasingly prevailing in recent years, especially in emerging markets like China. Some of the VCFs have to syndicate with “worse performers” despite the “better performer preference.” The primary aim of this article is to contribute to our understanding of the impact performance gap among syndicated VCFs on formulation and duration of syndicate. The data consist of over 295,000 pair of VCFs syndicated in China mainland from 2000 to 2020. We find the negative effect of performance gap on the propensity of syndication with self-categorization of VCFs as the moderator. The key contribution of this paper is to test the significance of homogenous performance in syndication. This study advances the knowledge of agency in collaboration and sheds new light on organizational performance feedback in venture capital markets.

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Centrality Measures in Finding Influential Nodes for the Big-Data Network

Gopalakrishnan

Sridharan

Swaminathan

2021

Handbook of Smart Materials, Technologies, and Devices

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Network analysis determines node-to-node connectivity and examines each node's features. Various tools are available in the literature to study networks like graph theoretical, statistical, and many. As the graph plays a vital role in representing networks, the centrality measurements play an essential role in network analysis. The centrality measures use various metrics for evaluating how important the node is. The centrality predicts the characteristics and importance of the nodes in the network. In this review, selected 16 centrality measures presented along with their implementations.

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Dynamics of Venture Capital Syndication: Perspective of Information

Cited by 4 publications

References 46 publications

Going Abroad, Friends on Board: Cross-Border Venture Capital and Syndication Strategy in China

Going Abroad, Friends on Board: Cross-Border Venture Capital and Syndication Strategy in China

Like Performance, Perfect Match: Role of Past Performance in Venture Capital Syndication

Centrality Measures in Finding Influential Nodes for the Big-Data Network

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