Venture‐Capital Syndication: Improved Venture Selection vs. The Value‐Added Hypothesis

@article{Brander2002VentureCapitalSI,
  title={Venture‐Capital Syndication: Improved Venture Selection vs. The Value‐Added Hypothesis},
  author={J. Brander and R. Amit and Werner Antweiler},
  journal={Journal of Economics and Management Strategy},
  year={2002},
  volume={11},
  pages={423-452}
}
  • J. Brander, R. Amit, Werner Antweiler
  • Published 2002
  • Economics
  • Journal of Economics and Management Strategy
  • Syndication arises when venture capitalists jointly invest in projects. We model and test two possible reasons for syndication: project selection, as an additional venture capitalist provides an informative second opinion; and complementary management skills of additional venture capitalists. The central question is whether venture capitalists are engaged primarily in selection or in managerial value added. These alternatives imply contrasting predictions about comparative returns to syndicated… CONTINUE READING
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