The syndication of venture capital investments

By Andy Lockett, Mike Wright. 2001

728 citations recorded by the source corpus.

Subfields: Accounting, Management of Technology and Innovation

View Paper: https://www.semanticscholar.org/paper/16515f5911088b5f65e81b6f66f41286cf942f0e

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In Management of Technology and Innovation

Citations in the corpus

Human capital theory and venture capital firms: exploring “home runs” and “strike outs” (2005, background): “A significant proportion of venture capital deals are syndicated (Bygrave, 1987; Lerner, 1994b) and the connectedness of VCFs within certain regions or industry sectors ranges between 22% and 69% (Bygrave 1988).”
Whom You Know Matters: Venture Capital Networks and Investment Performance (2007, neutral): “Previous work focuses on describing the structure of syndication networks (Bygrave (1988), Stuart and Sorensen (2001)) and motivating the use of syndication (Lerner (1994a), Podolny (2001), Brander, Amit, and Antweiler (2002)).”
Preplanned Exit Strategies in Venture Capital (2008, background): “Further theoretical work in the spirit of Casamatta and Haritchabalet (2003) and empirical work in the spirit of Lerner (1994), Lockett and Wright (2001), and Gompers (1995) could consider staging and syndication vis-à-vis preplanned exits; those topics are beyond the scope of this paper.”
Success in Global Venture Capital Investing: Do Institutional and Cultural Differences Matter? (2014, positive): “In the VC context, Lerner (1994a) provides the first evidence that VC syndication positively influences company success through better deal screening, due diligence, and complementary value added by syndication partners.”
Do private equity owners increase risk of financial distress and bankruptcy (2012, background): “…investors have access to different sources of information, syndication delivers a second opinion on the future prospects of the company (e.g., Casamatta and Haritchabalet, 2007; Lerner, 1994), which leads to a better selection and may limit the risk that a particular company ends in bankruptcy.”
Taxation of a Venture Capitalist with a Portfolio of Firms (2004, neutral): “(see Lerner, 1994; Gompers, 1995; Gompers and Lerner, 1996; Kaplan and Stro ¨mberg, 2003; and the theoretical literature mentioned in footnote 5). Kaplan and Stro ¨mberg (2001, p. 427) emphasize, however, that cash flow and control rights are more like complements rather than substitutes.”
Unraveling the mechanisms of reputation and alliance formation: : A study of venture capital syndication in China (2014, neutral): “Second, the choice between the alliance approach and the stand-alone approach is an important and inevitable decision that any leading VC has to make prior to the investment (Lerner, 1994).”
Partner Selection Decisions in Interfirm Collaborations: The Paradox of Relational Embeddedness (2010, background): “Several motives have been offered for syndication, including risk diversification, resource based motives (Brander et al., 2002; Lerner, 1994; Lockett and Wright, 2001), and access to deal flow (Manigart et al.”
Convertible Securities and Venture Capital Finance (2003, background): “See Lerner (1994) for a discussion.”
Venture Capital Conflicts of Interest: Evidence from Acquisitions of Venture-Backed Firms (2010, neutral): “Prior studies find that VCs time their exits to periods with better IPO market conditions (Lerner, 1994b), which raises the expected proportion of VC-backed acquisitions in such times.”
Determinants of Cross-Border Venture Capital Investments in Emerging and Developed Economies: The Effects of Relational and Institutional Trust (2015, neutral): “One possible explanation catching the attention of researchers is network effects, specifically the growing tendency for foreign VCs to team up in a syndicate with domestic partners to take advantage of their local expertise and to ensure interaction (Lerner 1994; Mowery et al. 1996; Dai and Nahata ”
How Smart is Smart Money? An Empirical Two-Sided Matching Model of Venture Capital (2003, methodology): “These investors serve different purposes than the initial investor, and the market for later rounds differs fundamentally from the market for initial investments (see Admati and Pfleiderer (1994) and Lerner (1994a)).”
Bringing the Context Back In: Settings and the Search for Syndicate Partners in Venture Capital Investment Networks (2008, background): “…that syndicated investments diversify risk by allowing VC firms to allocate smaller amounts in a greater number of companies (Wilson, 1968) and that they leverage investors’ due diligence skills and domain-specific expertise across coalitions of firms (Sah and Stiglitz, 1986; Lerner, 1994).”