Syndication et financement de l'innovation : motif de partage du risque versus expertise
Venture capital firms are known as specific financial intermediaries, providing not only funds but also expertise to innovative projects. This paper analyses the consequences venture capital investments syndication for an expertise motive can have on investment decisions and on post-investment involvement of investors. In that perspective, we use the analytical framework provided by the Soft (versus Hard) Budget Constraint literature and more specifically the paper published by Huang and Xu  in which the capacity of syndication for risk diversification to refinance short-run inefficient projects is examined. We develop an extension of that model in order to consider the specificity of syndication for expertise and what could be its impact on investors? refinancing decision. Then, the model discusses the conditions for which syndication for expertise motive may be more profitable for venture capitalists than syndication for a pure risk diversification motive.
Volume (Year): 120 (2010)
Issue (Month): 4 ()
|Contact details of provider:|| Web page: http://www.cairn.info/revue-d-economie-politique.htm|
When requesting a correction, please mention this item's handle: RePEc:cai:repdal:redp_204_0643. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jean-Baptiste de Vathaire)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.