The Role of Venture Capital Syndication in Value Creation for Entrepreneurial Firms

摘要：

I analyze how venture capital (VC) syndication creates value for entrepreneurial firms and how such value creation affects these firms’ performance over time. Using a large data set consisting of syndicate-backed and individual-backed entrepreneurial firms, I found that VC syndicates uniquely create value for firms in two ways. First, VC syndicates invest significant amounts in younger firms, in earlier rounds, and in earlier stages of the firm life cycles. Second, VC syndicates help firms efficiently access financial markets by signaling those firms’ true value to various market players. I found that entrepreneurial firms backed by VC syndicates enjoy higher probabilities of successful exits, higher IPO market valuation, better long-term stock returns, and greater market participation by reputable financial market players both at the time of an IPO and for a longer period subsequent to the IPO.

作者: Xuan Tian

作者单位: Finance Department, Carroll School of Management, Boston College, Chestnut Hill, MA 02467

会议类型: 国际会议

会议名称: 2007年中国金融国际年会

会议地点: 成都

会议语种:英文

页码: 1-52

在线出版日期: 2007-07-09（万方平台首次上网日期，不代表论文的发表时间）