The influence of venture capital syndicate size on venture performance

IF 2.8 4区 管理学 Q2 BUSINESS, FINANCE Venture Capital Pub Date : 2021-04-03 DOI:10.1080/13691066.2021.1893933
Ji Youn (Rose) Kim, H. Park
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引用次数: 4

Abstract

ABSTRACT Venture capital (VC) syndicates pool diverse resources from their members to accomplish the common goal of nurturing new ventures for a successful exit. Although the size of syndicate is a fundamental attribute impacting performance, the influence of syndicate size is less understood in prior studies with mixed findings. To address the gap, we suggest that there is an inverted U relationship between a syndicate size and venture performance. As the number of partners in a VC syndicate increases, a syndicate can provide more heterogeneous resources that can help its portfolio company succeed, but coordination costs increase as well. We thus predict that the net effect combining these two countervailing effects yields an inverse-U relationship between syndicate size and performance. We further examine two boundary conditions under which the nonlinear relationship is likely to manifest. Analyzing 407 investment syndicates formed by 1,106 VC firms for new ventures in the U.S. information and communications technology sector between 1990 and 2006, we find that the relationship between syndicate size and performance is an inverse-U shape. We further find that geographic distance among syndicate partners flattens the inverse-U curve, whereas a strong reputation of the lead VC firms shifts the inverse-U curve to the right.
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风险投资财团规模对风险投资绩效的影响
风险投资集团(VC)为实现培育新创企业成功退出的共同目标,从其成员中汇集不同的资源。虽然辛迪加的规模是影响绩效的一个基本属性,但在以往的研究中,辛迪加规模的影响鲜为人知,研究结果喜忧参半。为了解决这一差距,我们建议辛迪加规模与风险绩效之间存在倒U关系。随着风投辛迪加中合作伙伴数量的增加,辛迪加可以提供更多的异构资源,帮助其投资组合公司取得成功,但协调成本也会增加。因此,我们预测,结合这两种抵消效应的净效应在辛迪加规模和绩效之间产生反u型关系。我们进一步研究了非线性关系可能出现的两个边界条件。通过分析1990 - 2006年间1106家风险投资公司在美国信息通信技术行业为新企业组建的407个投资辛迪加,我们发现辛迪加规模与绩效之间呈倒u型关系。我们进一步发现,辛迪加合伙人之间的地理距离使倒u曲线趋平,而领先风投公司的良好声誉使倒u曲线向右移动。
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来源期刊
Venture Capital
Venture Capital BUSINESS, FINANCE-
CiteScore
4.10
自引率
16.70%
发文量
21
期刊介绍: Venture Capital publishes cutting edge research-based papers from academics and practitioners on all aspects of private equity finance such as: •institutional venture capital •informal venture capital •corporate venture capital •public sector venture capital •community venture capital It also covers all aspects of the venture capital process from investment decision to exit, including studies on: •investment patterns •investment decision-making •investment performance •realisation of investment value exit routes (including the relationship with junior capital markets such as NASDAQ, EASDAQ, AIM and Nouvelle March). •economic impact and public policy
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