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Venture capital syndication and the financing of innovation: Financial versus expertise motives

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  • Dal-Pont Legrand, Muriel
  • Pommet, Sophie

Abstract

Building on Huang and Xu's (2003) financial syndication model, we model syndication for expertise, and examine its impact on post-investment, venture capitalist involvement. We compare the performances of financial versus expertise motives on the decision to finance innovation.

Suggested Citation

  • Dal-Pont Legrand, Muriel & Pommet, Sophie, 2010. "Venture capital syndication and the financing of innovation: Financial versus expertise motives," Economics Letters, Elsevier, vol. 106(2), pages 75-77, February.
    • Handle: RePEc:eee:ecolet:v:106:y:2010:i:2:p:75-77
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    1. M. Dewatripont & E. Maskin, 1995. "Credit and Efficiency in Centralized and Decentralized Economies," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 62(4), pages 541-555.
    2. Huang, Haizhou & Xu, Chenggang, 2003. "Financial syndication and R&D," Economics Letters, Elsevier, vol. 80(2), pages 141-146, August.
    3. James A. Brander & Raphael Amit & Werner Antweiler, 2002. "Venture‐Capital Syndication: Improved Venture Selection vs. The Value‐Added Hypothesis," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 11(3), pages 423-452, September.
    4. Casamatta, Catherine & Haritchabalet, Carole, 2007. "Experience, screening and syndication in venture capital investments," Journal of Financial Intermediation, Elsevier, vol. 16(3), pages 368-398, July.
    5. Sophie Manigart & Andy Lockett & Miguel Meuleman & Mike Wright & Hans Landström & Hans Bruining & Philippe Desbrières & Ulrich Hommel, 2006. "Venture Capitalists' Decision to Syndicate," Post-Print halshs-00078062, HAL.
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    Cited by:

    1. Jonathan Labbé, 2020. "Venture capital risk, start-ups and innovation: the syndication of venture capital investments recipe [Capital-risque, start-ups et innovation : la recette du financement par syndication]," Post-Print hal-03000103, HAL.

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