Firm Size Effects on Venture Capital Syndication: The Role of Resources and Transaction Costs

The present paper examines firm size effects on the decision of venture capital firms to participate in a venture capital investment syndication network. The authors submit that firm size effects in venture capital syndication are dependent on resource acquisition motives and transaction cost considerations. Analysis of 317 venture capital firms in 6 European countries reveals a curve linear relationship between firm size and venture capital syndication participation. We also find positive and negative moderating effects of firm size. The implication of our findings is that there are both advantages and disadvantages in syndicated investment for the smaller and larger venture capitalist.Firm Size;Resource-Based View;Syndication Networks;Transaction Cost Theory;Venture Capital

Banking Environment, Agency Costs, and Loan Syndication : A Cross-Country Analysis

Bank loan syndicate structure can be considered as an organizational response to agency problems stemming from the syndication process. The banking environment also influences the syndication process. We investigate how syndicate structure is influenced by the characteristics of the banking environment, such as banking market structure, financial development, banking regulation and supervision, and legal risk. The results of a cross-country analysis performed on a sample of 15,586 syndicated loan facilities from 24 countries over a period of 15 years confirm that syndicate structure is influenced by banking environments consistent with agency costs minimization and efficient re-contracting objectives.Banking environment, Agency costs, Loan syndication, Syndicate structure.

The Regional Supply of Venture Capital - Can Syndication overcome Bottlenecks?

We investigate whether the supply of venture capital (VC) is driven by spatial proximity between a VC company and the portfolio firm. Our analysis is based on information about VC investments in Germany between 2004 and 2009. We find that possible problems caused by the geographic distance to a portfolio firm seem to be overcome by syndication of investments with one of the VC firms located close to the investment. Our analysis does, however, suggest that short geographic distance between an investor and the investment has an increasing effeon the probability for syndication as well as on the number of firms that join the syndicate. Hence, local VC suppliers may assume a role of an 'anchor' connecting the regional economy to more distant parts of the industry.Venture Capital, syndication, geographic proximity, start-up financing, equity gap

Managing a portal of digital web resources by content syndication

As users become more accustomed to continuous Internet access, they will have less patience with the offering of disparate resources. A new generation of portals is being designed that aids users in navigating resource space and in processing the data they retrieved. Such portals offer added value by means of content syndication: the effort to have multiple, federated? resources co-operate in order to profit optimally from their synergy. A portal that offers these advantages, however, can only be of lasting value if it is sustainable. We sketch a way to set up and run an organisation that can manage a content syndication portal in a sustainable way.\ud \u

Who Chooses Whom? Syndication, Skills and Reputation

Syndication, which is a joint realization of one project/one investment by several capital providers, is a long existing phenomenon that plays a central role in many financial market segments. Within this paper we develop a theoretical model focusing on the dynamic aspect of syndication, namely the know-how transfer between syndication partners and their ability to learn. The core of the analysis checks whether repeated relationships and, thus, reputational concerns outweigh the temptation to renege on a given contract. Throughout the paper, we investigate two key topics. The first consists of the conditions under which investors syndicate their deals. The second focuses on who chooses whom. We show that experienced financiers may partner with either other experienced investors (in order to raise the success probability of a project) or with unskilled investors (who can gain knowledge). We further demonstrate that sometimes the syndication is impeded because the financier believes that his partner has strong incentives to either renege on a contract (hold-up problem) or to shirk (moral hazard problem). --Syndication,Hold-up,Reputation,Learning

Why Do European Venture Capital Companies Syndicate?

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

Why do European Venture Capital Companies syndicate?

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.

Realization of Semantic Atom Blog

Web blog is used as a collaborative platform to publish and share information. The information accumulated in the blog intrinsically contains the knowledge. The knowledge shared by the community of people has intangible value proposition. The blog is viewed as a multimedia information resource available on the Internet. In a blog, information in the form of text, image, audio and video builds up exponentially. The multimedia information contained in an Atom blog does not have the capability, which is required by the software processes so that Atom blog content can be accessed, processed and reused over the Internet. This shortcoming is addressed by exploring OWL knowledge modeling, semantic annotation and semantic categorization techniques in an Atom blog sphere. By adopting these techniques, futuristic Atom blogs can be created and deployed over the Internet

Legality and Venture Governance Around the World

We analyze governance with a dataset on investments of venture capitalists in 3848 portfolio firms in 39 countries from North and South America, Europe and Asia spanning 1971-2003. We find that cross-country differences in Legality have a significant impact on the governance structure of investments in the VC industry: better laws facilitate faster deal screening and deal origination, a higher probability of syndication and a lower probability of potentially harmful co-investment, and facilitate board representation of the investor. We also show better laws reduce the probability that the investor requires periodic cash flows prior to exit, which is in conjunction with an increased probability of investment in high-tech companies.Venture Capital, Corporate Governance, Syndication, Entrepreneurial Finance

Nothing Ventured - Nothing Gained? Empirical Evidence on Venture Capital Financing in Switzerland

Venture Capital, Entrepreneurship, Syndication