This paper explores factors that affect portfolio size among a sample of venture capital financing data from 214 Canadian funds. Four categories of factors affect portfolio size: (1) the venture capital funds' characteristics, including the type of fund, fund duration, fund-raising, and the number of venture capital fund managers; (2) the entrepreneurial firms' characteristics, including stage of development, technology, and geographic location; (3) the nature of the financing transactions, including staging, syndication, and capital structure; and (4) market conditions. The data further indicate decreasing returns to scale in the number of entrepreneurial firms financed by a venture capital fund.
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Article provided by University of Chicago Press in its journal Journal of Business.
Volume (Year): 79 (2006) Issue (Month): 3 (May) Pages: 1083-1126 Download reference. The following formats are available: HTML
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Bruining, J. & Verwaal, E. & Lockett, A. & Wright, D.M. & Manigart, S., 2005.
"Firm Size Effects on Venture Capital Syndication: The Role of Resources and Transaction Costs,"
Research Paper
ERS-2005-077-STR Revision, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni.
[Downloadable!]
Manigart, S. & Bruining, J. & Lockett, A. & Meuleman, M., 2002.
"Why Do European Venture Capital Companies Syndicate?,"
Research Paper
ERS-2002-98-ORG Revision_, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni.
[Downloadable!]