University of Twente Student Theses
VC Syndication in the DACH Region: A Strategic Mean to Ensure Firm Survival.
von Lenthe, Anna (2014) VC Syndication in the DACH Region: A Strategic Mean to Ensure Firm Survival.
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| Abstract: | This study proposes a new perspective to explain what drives venture capital (VC) firms located in the in the German-speaking countries of the EU, the so-called DACH region, to engage in syndication behaviour. By taking a context-sensitive approach, it postulates that these VC firms are driven to engage in syndication behaviour by the need to ensure future firm survival. Drawing upon resource dependence- , as well as signalling theory, a conceptual framework is developed to explain this reasoning, suggesting that in environments characterized by risk averse and inexperienced investors in respect to venture capital, VC firms face increased difficulties to collect sufficient capital for future firm existence. Especially those firms exhibiting unfavourable firm characteristics, alienating hesitant investors even more, face an accelerated risk of business failure. This study investigates which VC firm characteristics serve to explain that the syndication behaviour of VC firms in the DACH region is indeed need-driven. It proposes that a VC firm’s early stage- and dispersed industry focus, low access to financial resources, small HR capacity, as well as the opportunity to establish informal ties significantly influence a VC firm’s propensity to syndicate. Applying multiple linear regression, findings shows that a VC firm’s early stage- and dispersed industry focus, as well as its access to financial resources indeed have a positive influence, whereas its human resources capacity as well as alternative opportunities to establish ties have a negative influence on its decision to syndicate. |
| Item Type: | Essay (Master) |
| Faculty: | BMS: Behavioural, Management and Social Sciences |
| Subject: | 85 business administration, organizational science |
| Programme: | Business Administration MSc (60644) |
| Link to this item: | https://purl.utwente.nl/essays/66150 |
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