The effects of prior co‐investments on the performance of venture capitalist syndicates: A relational agency perspective

Cristiano Bellavitis, Joost Rietveld, Igor Filatotchev

Publication: Scientific journalJournal articlepeer-review


This study provides a reconciliation ofprevious findings regarding the effects of prior co-investments among venture capitalists (VCs) and the perfor-mance of VC syndicates. We propose a relational agencyframework outlining cost–benefit trade-offs associated withprior co-investments between VCs. A longitudinal study of4,550 U.S. ventures receiving syndicated investments from1980 to 2017 shows that there exists an inverted U-shapedrelationship between the number of prior co-investmentsand a venture's likelihood of a successful exit through initialpublic offering or merger and acquisition. We further findthat the relationship between prior co-investments and syn-dicate performance is moderated by venture- and partner-specific risks.
Original languageEnglish
Pages (from-to)240 - 264
JournalStrategic Entrepreneurship Journal (SEJ)
Publication statusPublished - 2019

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