Heterogeneous Venture Capitalists and Syndicate Switching

时间:2021-09-07浏览:10设置


ShanghaiTech SEM Working Paper No. 2021-008


 Suting Hong

ShanghaiTech University

Pierre Mella-Barral

TBS Business School


In early round investments by VC syndicates, the VCs which compose the syndicate often have very different levels of experience. In later round VC syndicates, often no VC from the earlier round syndicate is present. We show that a theory of informational hold-up by the incumbent syndicate can relate and explain these two observations. Consistent with the theory, we find empirically that the heterogeneity in experience of VC syndicate partners is (i) negatively related to the extent to which outside VCs trust in the entrepreneur and (ii) positively related to the likelihood of syndicate switching in a later round.


Date Written: July, 2021

Available at SSRN: https://ssrn.com/abstract=3920104

Download this paper: 【No. 2021-008】Heterogeneous Venture Capitalists and Syndicate Switching.pdf










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