Impact of venture capital investment syndication on enterprise lifecycle and success
The article investigates the impact of venture capital investment and investment syndication on enterprise lifecycle and success using the exit history of venture capital backed companies in Australia. It is observed that the venture capital backed companies tend to outperform those which are not wh...
| Main Authors: | , , |
|---|---|
| Format: | Journal Article |
| Published: |
Canadian Center of Science and Education
2016
|
| Online Access: | http://hdl.handle.net/20.500.11937/4812 |
| _version_ | 1848744621873561600 |
|---|---|
| author | Siddiqui, A. Marinova, Dora Hossain, A. |
| author_facet | Siddiqui, A. Marinova, Dora Hossain, A. |
| author_sort | Siddiqui, A. |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | The article investigates the impact of venture capital investment and investment syndication on enterprise lifecycle and success using the exit history of venture capital backed companies in Australia. It is observed that the venture capital backed companies tend to outperform those which are not while companies receiving syndicated venture capital investment tend to outperform the other venture capital backed companies. Based on the classic venture capital investment theory, we argue that venture capitalists essentially engage in superior venture selection through pre-investment screening and contribute to entrepreneurial development through post-investment monitoring and value creation. We then empirically investigate the lifecycle of the Australian venture capital backed companies from company formation to first venture capital financing round to exit. Survival duration of the ventures, investment growth and exit status are specifically analysed to capture the lifecycle. The findings show that the survival duration prior and post venture capital investment, venture capital investment growth in successive rounds and investment syndication increase the probably of success for the ventures. |
| first_indexed | 2025-11-14T06:04:23Z |
| format | Journal Article |
| id | curtin-20.500.11937-4812 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T06:04:23Z |
| publishDate | 2016 |
| publisher | Canadian Center of Science and Education |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-48122017-09-13T14:39:15Z Impact of venture capital investment syndication on enterprise lifecycle and success Siddiqui, A. Marinova, Dora Hossain, A. The article investigates the impact of venture capital investment and investment syndication on enterprise lifecycle and success using the exit history of venture capital backed companies in Australia. It is observed that the venture capital backed companies tend to outperform those which are not while companies receiving syndicated venture capital investment tend to outperform the other venture capital backed companies. Based on the classic venture capital investment theory, we argue that venture capitalists essentially engage in superior venture selection through pre-investment screening and contribute to entrepreneurial development through post-investment monitoring and value creation. We then empirically investigate the lifecycle of the Australian venture capital backed companies from company formation to first venture capital financing round to exit. Survival duration of the ventures, investment growth and exit status are specifically analysed to capture the lifecycle. The findings show that the survival duration prior and post venture capital investment, venture capital investment growth in successive rounds and investment syndication increase the probably of success for the ventures. 2016 Journal Article http://hdl.handle.net/20.500.11937/4812 10.5539/ijef.v8n5p75 http://creativecommons.org/licenses/by/4.0/ Canadian Center of Science and Education fulltext |
| spellingShingle | Siddiqui, A. Marinova, Dora Hossain, A. Impact of venture capital investment syndication on enterprise lifecycle and success |
| title | Impact of venture capital investment syndication on enterprise lifecycle and success |
| title_full | Impact of venture capital investment syndication on enterprise lifecycle and success |
| title_fullStr | Impact of venture capital investment syndication on enterprise lifecycle and success |
| title_full_unstemmed | Impact of venture capital investment syndication on enterprise lifecycle and success |
| title_short | Impact of venture capital investment syndication on enterprise lifecycle and success |
| title_sort | impact of venture capital investment syndication on enterprise lifecycle and success |
| url | http://hdl.handle.net/20.500.11937/4812 |