Family Corporate Venture Capital: Syndicate Partner Selection from the Perspective of Socio-Emotional Wealth

Research on family corporate venture capital (CVC) is still in its infancy. This study investigates the investment choices of family CVCs regarding the geographic distance and the reputation of their co-investors using a global dataset of 25,186 syndicated deals. We find that, while family CVCs generally exhibit greater distances within the investment triad of (family) CVC, investment target, and partners than non-family CVCs, this changes when they invest in early-stage startups. Moreover, family CVC investment participation is more likely when the syndicate partners have a high reputation. Our study contributes to research on family businesses’ external investments and CVC syndication.