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Syndication networks and company survival: Evidence from European venture-capital deals

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  • Christopoulos, Dimitris
  • Köppl, Stefan
  • Köppl-Turyna, Monika

Abstract

We look at syndication in the venture capital industry. Investments conducted by syndicates are believed to have better chances of being successful, measured by the survival probability of portfolio companies or by successful exits. Using a novel and large dataset, covering several countries, our analysis shows that strong network ties of investors are associated with success of portfolio companies in Europe. We also show that there are differences in the association of network centrality with survival between different financing rounds, the former being more important in early-stage investments. Finally, we show a strong association of network ties of investors with sales growth of portfolio companies, before and after the deal.

Suggested Citation

  • Christopoulos, Dimitris & Köppl, Stefan & Köppl-Turyna, Monika, 2020. "Syndication networks and company survival: Evidence from European venture-capital deals," Working Papers 21, Agenda Austria.
    • Handle: RePEc:zbw:agawps:21
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    Cited by:

    1. Köppl-Turyna, Monika & Köppl, Stefan & Christopulos, Dimitris, 2023. "How to support cleantech start-ups? Lessons from European venture-capital deals," Research Papers 25, EcoAustria – Institute for Economic Research.
    2. Köppl-Turyna, Monika & Köppl, Stefan & Bittó, Virág, 2022. "Herausforderungen in der Finanzierung der Energiewende und Rolle des Risikokapitals," Policy Notes 51, EcoAustria – Institute for Economic Research.

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    More about this item

    Keywords

    Venture Capital; Networks; Europe; Investment Syndication;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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