Venture Capital Syndication: Synthesis and future directions

Jääskeläinen, Mikko

doi:10.1111/j.1468-2370.2011.00325.x

Cited by 52 publications

(25 citation statements)

References 137 publications

(341 reference statements)

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…

Risk aversion explains much of the structure of interfi rm cooperation.

Being well connected explains outperformance.

Venture capital fi rms benefi t from syndication with a range of successful peers. Similar fi gures have been observed for the US VC market (Gompers and Lerner, 2001;Jääskeläinen, 2011). capital fi rms co-invest in a venture, they defi ne an interfi rm tie of cooperation between them.

…”

supporting

confidence: 74%

Firm Performance and the Evolution of Cooperative Interfirm Networks: UK Venture Capital Syndication

et al. 2014

View full text Add to dashboard Cite

show abstract

“…

Risk aversion explains much of the structure of interfi rm cooperation.

Being well connected explains outperformance.

…”

supporting

confidence: 74%

Firm Performance and the Evolution of Cooperative Interfirm Networks: UK Venture Capital Syndication

et al. 2014

View full text Add to dashboard Cite

show abstract

“…; Cornelli and Yosha ; Cumming ,b, , ; Gompers ; Gompers et al . ; Hirsch and Walz ; Jääskeläinen ; Jääskeläinen et al . ; Kaplan and Strömberg ; Krohmer et al .…”

Section: Vc Contract and Security Designunclassified

‘If the Facts Don't Fit the Theory … ’: The Security Design Puzzle in Venture Finance

Zambelli¹

2014

Int J Management Reviews

View full text Add to dashboard Cite

When confronting theory with evidence, divergent results surface with reference to the optimal securities that should be adopted in venture capital (VC) finance. The vast majority of the theoretical models on VC consistently predict that convertible securities, especially in the form of convertible preferred stocks, represent the optimal form of finance. While the theoretical literature seems to be supported by empirical studies in the US, the evidence outside the US shows the opposite results. Puzzling patterns emerge, especially when comparing the evidence from the US, Canada and Europe, and an intensive academic debate is under way. The evidence becomes even more challenging when considering the contrasting financing behaviour of US venture capitalists (VCs) investing in Canada. It has been documented that US VCs investing in Canada adopt a wide range of securities other than convertible stocks. If convertible securities truly represent the optimal form of VC finance, why would US VCs use different types of securities when investing in Canada? At present, researchers are still arguing about which factors would have the most significant impact on explaining the different financing behaviour of VCs around the world. The purpose of this paper is to shed some light on the ongoing international debate on the optimal security design and contracting behaviour in venture finance. With this review, the authors intend to contribute to the VC literature by identifying current trends, explanations and determinants underlying the puzzling empirical evidence on the financing structure adopted by VCs around the world.

show abstract

“…In the literature, the ventures' performance is usually presented with the successful exit option or the internal rate of return (IRR) and VC syndication generally views this positively (Jääskeläinen, 2012). Brander et al (2002) investigated 584 VC exits in the US and found that the syndicated ventures enjoy significantly higher return compared to the rest.…”

Section: Syndication Decisionmentioning

confidence: 99%

“…Investment syndication in the venture capital market is fairly common with some regional variations. For example, almost one third of the European VC investments and around two thirds for the US venture investments are syndicated (Manigart et al, 2006;Jääskeläinen, 2012). Bygrave (1987) in his pioneering work on VC syndication argued that uncertainty associated with investment and need to access the specialised resources of other investors primarily drive syndication.…”

Section: Syndication Decisionmentioning

confidence: 99%

Impact of Venture Capital Investment Syndication on Enterprise Lifecycle and Success

Siddiqui¹,

Hossain²

2016

IJEF

View full text Add to dashboard Cite

The article investigates the impact of venture capital investment and investment syndication on enterprise lifecycle and success using the exit history of venture capital backed companies in Australia. It is observed that the venture capital backed companies tend to outperform those which are not while companies receiving syndicated venture capital investment tend to outperform the other venture capital backed companies. Based on the classic venture capital investment theory, we argue that venture capitalists essentially engage in superior venture selection through pre-investment screening and contribute to entrepreneurial development through post-investment monitoring and value creation. We then empirically investigate the lifecycle of the Australian venture capital backed companies from company formation to first venture capital financing round to exit. Survival duration of the ventures, investment growth and exit status are specifically analysed to capture the lifecycle. The findings show that the survival duration prior and post venture capital investment, venture capital investment growth in successive rounds and investment syndication increase the probably of success for the ventures.

show abstract

Venture Capital Syndication: Synthesis and future directions

Cited by 52 publications

References 137 publications

Firm Performance and the Evolution of Cooperative Interfirm Networks: UK Venture Capital Syndication

Firm Performance and the Evolution of Cooperative Interfirm Networks: UK Venture Capital Syndication

‘If the Facts Don't Fit the Theory … ’: The Security Design Puzzle in Venture Finance

Impact of Venture Capital Investment Syndication on Enterprise Lifecycle and Success

Contact Info

Product

Resources

About