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Syndication in Venture Capital Financing


  • Daniel N. Deli
  • Mukunthan Santhanakrishnan


We examine syndication in venture capital (VC) investments between 1980 and 2005. We argue that VC firms syndicate investments to mitigate human capital and financial constraints within individual VC firms and to reduce uncertainty about firm value. Our results are consistent with those arguments. We find that syndication is more likely for firms in the earliest stage of development and firms in the last stage of development as private firms (when human capital investments are greatest), for firms requiring the largest amounts of financial capital, and for firms with greater growth opportunities (those that are most difficult to value). Copyright (c) 2010, The Eastern Finance Association.

Suggested Citation

  • Daniel N. Deli & Mukunthan Santhanakrishnan, 2010. "Syndication in Venture Capital Financing," The Financial Review, Eastern Finance Association, vol. 45(3), pages 557-578, August.
  • Handle: RePEc:bla:finrev:v:45:y:2010:i:3:p:557-578

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    Cited by:

    1. Douglas Cumming & Uwe Walz & Jochen Christian Werth, 2016. "Entrepreneurial Spawning: Experience, Education, and Exit," The Financial Review, Eastern Finance Association, vol. 51(4), pages 507-525, November.

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