Article ID Journal Published Year Pages File Type
5100342 Journal of Empirical Finance 2016 14 Pages PDF
Abstract
This paper examines the preferences of venture capital firms for syndication partners and the impacts of syndication partners on venture capital firms. Co-investing with similar partners may reduce transaction costs, but it may also limit opportunities for learning. Based on U.S. data on venture capital investments, I find that, on average, venture capital firms are more likely to syndicate with partners that are similar to them, consistent with prior theoretical predictions. In the long term, however, venture capital firms may benefit more from co-investing with partners that are different from them.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Authors
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