Working Papers

The Ups and Downs of Venture Capital Syndication: Determinants and Outcomes
George Bittlingmayer, The University of Kansas; Shane M. Moser, The University of Mississippi

Abstract: Why do venture capitalists syndicate in more than sixty percent of first rounds? Syndication is more likely for larger first rounds, consistent with a diversification motive. Industry and geographic patterns of syndication, as well as variations by stage of the portfolio company, support the view that first-round syndicates also provide vetting, expertise, and networks, and that higher densities of venture capital firms make it easier for syndicates to function. In addition, indicators of lower future returns to venture capital investments are associated with higher rates of syndication, consistent with the use of first-round syndication as a defensive strategy. Empirical evidence further supports this view: first-round syndication of the 1990s, when syndication rates were low and prospects good, is associated with good exit outcomes, while syndication since 2000, when syndication rates were high and prospects poor, is associated with bad exit outcomes.

 

Academic Entrepreneurship Journals


The school and accounting program are accredited by AACSB International, The Association to Advance Collegiate Schools of Business
Our Finance Scholars travel to Wall Street every year
Students in Applied Portfolio Management class manage a fund valued at $1 million
Business students get hands-on experience valuing and analyzing investments
Top 20 undergraduate accounting program —Bloomberg Businessweek
One of 34 U.S. public institutions in the prestigious Association of American Universities
44 nationally ranked graduate programs.
—U.S. News & World Report
Top 50 nationwide for size of library collection.
—ALA
23rd nationwide for service to veterans —"Best for Vets," Military Times
KU Today