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Why do European Venture Capital Companies syndicate?

Author

Listed:
  • Sophie Manigart

    (Vlerick Leuven Gent Management School)

  • Miguel Meuleman

    (Vlerick Leuven Gent Management School)

Abstract

Financial theory, resource-based theory and access to deal flow are used to explain syndication practices among European venture capital (VC) firms. The desire to share risk and increase portfolio diversification is a more important motive for syndication than the desire to access additional intangible resources or deal flow. Access to resources is, however, more important for non-lead than for lead investors. When resource-based motives are more important, the propensity to syndicate increases. Syndication intensity is higher for young VC firms and for VC firms, specialised in a specific investment stage. Finally, syndication strategies are similar across European countries, but differ from North American strategies.

Suggested Citation

  • Sophie Manigart & Miguel Meuleman, 2002. "Why do European Venture Capital Companies syndicate?," Finance 0210006, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpfi:0210006
    Note: Type of Document - ; pages: 38
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    References listed on IDEAS

    as
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    • G - Financial Economics

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