A number of publications which follow on the footsteps of an earlier project on the VC ecosystem in Vienna. The first paper in this series is on syndication networks published in the journal Venture Capital (abstract below). In this we look at how syndication networks affect the performance of VC investments. We demonstrate an association between investment syndication ties (i.e. decisions with whom to coinvest) and the growth of portofolio companies.
We then looked at the role of the three type of VC investment vehicles: private, public and hybrid. In a working paper we find that indirect (hybrid) VCs are performing best, with private and public VCs following. This work is currently under review. We are currently looking at how to support clean-tech start-up deals.
In a number of conference papers and invited talks I have produced evidence of a positive variance in the performance of clean-tech start-ups. This is an exciting avenue for future research and I have committed substantial resources in that direction.
Graph: Performance of clean-tech VC funds 2013-2022, (+10mil$, 1165 cases)
Syndication networks and company survival: evidence from European venture capital deals
Dimitris Christopoulos, Stefan Koeppl & Monika Köppl-Turyna, Venture Capital 24/2, 2022
Abstract
This study investigates the phenomenon of syndication in the venture capital industry. Investments conducted by syndicates are believed to have a better chance of being successful, which can be measured by the survival probability of portfolio companies or by successful exits. Using a novel and large dataset covering several countries, our analysis shows that investors’ strong network ties are associated with the success of portfolio companies in Europe. We also demonstrate differences in the association of network centrality with survival between different financing rounds, with the former being more important in early-stage investments and in the first round of financing. Furthermore, we show a strong association of investors’ network ties with the sales growth of portfolio companies before and after the deal, which is consistent in both selection and value-added channels. Finally, we explicitly account for the endogeneity of syndicate formation and show that the results hold if we instrument for venture firms’ network properties, as indicated by significant and correspondingly larger coefficients.
Policy Complexity 
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