The company you keep: Syndicate formation in venture capitalists’ cross-border investments
研究了风险投资家在跨境投资中组建辛迪加时，如何在代理成本和资源互补之间权衡，发现地理和心理距离促使VC减少辛迪加规模但更倾向邀请本地VC，而高国际认可度的VC更依赖小规模辛迪加来降低代理成本。
This paper studies how venture capitalists trade-off agency and resource considerations when syndicating for cross-border investments. We argue that syndicate size and the decision to partner with local VCs involves a complex trade-off between the potential agency costs from multiple VCs in one syndicate and the benefits of foreign VCs with complementary resource endowments. Based on data of 15,725 cross-border VC investments we show that, in the presence of geographic and psychic distances between VC syndicate members, VCs reduce complexity from syndicate size (agency perspective) but are more likely to invite local VC co-investors (resource perspective). VC firms with high international recognition rely less on other syndicate members’ resources and minimize agency costs through smaller syndicates. VC firms with high host-country recognition face lower local partner search costs and have a hgher probility to have local partners in the syndicate. Our paper contributes a framework for syndication in cross-border VC investment that recognizes the importance of distance between VCs and the role of recognition of VCs as a valuable resource in the syndication trade-off. • Venture capitalists trade-off agency and resource considerations when syndicating for cross-border investments. • We argue that syndicate size and the decision to partner with local VCs involves a complex trade-off between the potential agency costs from multiple VCs in one syndicate and the benefits of foreign VCs with complementary resource endowments. • We show that, in the presence of geographic and psychic distances between VC syndicate members, VCs reduce complexity from syndicate size (agency perspective) but are more likely to invite local VC co-investors (resource perspective). • VC firms with high international or host-country recognition, a vital resource in deal generation, rely less on other syndicate members’ resources and minimize agency costs through smaller syndicates. • We contribute a framework for syndication in cross-border VC investment that recognizes the importance of psychic distance between VCs and the role of recognition of VCs as a valuable resource in the syndication trade-off.