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How Do Venture Capitals Build Up Syndication Ecosystems for Sustainable Development?

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  • Jie Ren

    (School of Economics and Management, Tsinghua University, Beijing 100084, China)

  • Jar-Der Luo

    (School of Social Sciences, Tsinghua University, Beijing 100084, China)

  • Ke Rong

    (School of Social Sciences, Tsinghua University, Beijing 100084, China)

Abstract

When the resources of a focal organization are limited, strengthening the capability of sustainable performance by building up an ecosystem through cooperation is a good choice. When venture capital firms invest in sustainable projects, due to the non-rival and non-exclusive features of sustainable projects, venture capital firms that have built up the cooperation ecosystem can invite more investors to join the sustainable projects. This article analyzes what factors venture capital firms take into consideration when building relations to nurture sustainable investment ecosystems. The quadratic assignment procedure (QAP) method is used to explore how Chinese venture capital firms build up the syndication ecosystems. We conclude that very dominant venture capital firms like to cooperate with venture capital firms that have brokerage benefits and proper positions in the cluster to gain sustainable development. This article indicates that venture capital firms can build up syndication ecosystems by obtaining opportunities from indirect ties.

Suggested Citation

  • Jie Ren & Jar-Der Luo & Ke Rong, 2020. "How Do Venture Capitals Build Up Syndication Ecosystems for Sustainable Development?," Sustainability, MDPI, vol. 12(11), pages 1-14, May.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:11:p:4385-:d:363523
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    Cited by:

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    2. Ruling Zhang & Zengrui Tian & Killian J. McCarthy & Xiao Wang & Kun Zhang, 2023. "Application of machine learning techniques to predict entrepreneurial firm valuation," Journal of Forecasting, John Wiley & Sons, Ltd., vol. 42(2), pages 402-417, March.

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