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Global Connections, Local Impacts: The Enduring Effects of International Syndication Experience on Venture Capital Investments

Year: 2025

Type: article

Abstract: We investigate how a domestic venture capital (VC) firm’s syndication experience with reputable foreign VC firms improves its likelihood of achieving successful exits for entrepreneurial firms that it subsequently funds. We identify two complementary theoretical mechanisms: (a) domestic VC firms can gain certification from reputable foreign VC firms that improves access to superior investment opportunities and (b) they can learn from reputable foreign VC firms to better select and nurture ventures. Furthermore, the positive impact of syndication experience is particularly pronounced in facilitating exits for portfolio companies in foreign countries. Our findings highlight the enduring benefits that domestic VC firms gain from partnerships with reputable foreign VC firms.

Source: Entrepreneurship Theory and Practice

DOI: 10.1177/10422587251362900

Authors: Suting Hong, Massimiliano Guerini, Haemin Dennis Park

Institutions: Xi’an Jiaotong-Liverpool University, Politecnico di Milano, The University of Texas at Dallas

Language: English

Topic: Private Equity and Venture Capital

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Partnerships for the goals, Decent work and economic growth

Open Access status: green

OpenAlex ID: W4413993248

FWCI: 8.101

Cites: 68

Cited by: 3

Related to: 10