The Research Into Syndication Behavior Of Venture Capital Institutions In China

In recent years, the venture capital syndication in China’s venture capital market have received the common verification and recognition, and as an investment strategy commonly used by the venture capital institutions. As an investment strategy, the syndicate behavior may be have a range of driving factors, the starting point of using the stratege is different because of the different institutional investors、different investment projects and even different stage of the same project. The Coalition partner of venture capital syndication require to choose carefully.but what are the factors that affect the syndicate behavior exactly? This article will make a detailed answer to this issue.This paper conduct a study on venture capital syndicate behavior from the two perspectives of resource dependence and relational network, and make a detailed analysis of the relationship between the syndicate behavior and resource dependence and relational network. The writer hope that through in-depth analysis of the syndicate behavior, the Venture Capitalists may fully understand the nature of venture capital syndicate behavior, and make the right decision-making about joint investment, in order to integrate a variety of scarce resources fully and effectively in China’s venture capital market, this conduce to enhance cooperation and eliminate cutthroat competition, in order to maintain China’s venture capital industry development rapidly and healthily, and boost economic transformation in china.This paper first analyzes the the status quo about research on venture capital syndicate behaviour domestic and foreign, elaborate the background knowledge relevant to syndication,and reviewed the literatrues about syndicate behavior. This paper presents two theoretical basis of this article,that are resource dependence theory and the relational network theory, then,the writer make a theoretical analysis about syndicate behaviour in support of these two theories, and put forward two hypotheses. Finally, through the analysis of the three classic case to confirm the hypothesis put forward in this paper.there are five chapters of this paper in total:The first chapter is the introduction and described the research background and significance of this paper, summarized the research status quo domestic and overseas, and elaborated the research ideas and research methods. The second chapter is the introduction about the background knowledge of venture capital syndication. This chapter have elaborated related concepts of syndication、 relational network venture capital network of relationships and syndication network, and focuses on reveal the advantages of syndication. Chapter three summarized the correlational research about syndication, mainly include the driving factors of syndication、syndicate relational network and the performance of syndicate behavior. The fourth chapter is divided into two parts. The first part makes a theoretical analysis on the syndicate behavior from the perspective of resource dependence theory, and put forward the first assumption. The second part of this chapter makes a research on the syndicate behavior from the perspective of the relational network, and put forward the second assumption. The fifth chapter is case study.The writer illustrate the analytical method first, then reveals the relationships on resource dependence and relational network between venture capital institutions by analysis on three representative case about syndication, and draw the relational graph in order to facilitate the readers. The topic in the chapter sixth are the main conclusions of this paper and put forward future research prospects.In this paper,three conclusions have been put forward. First one:The syndication as a widely used way in venture capital investment has a variety of functions and advantages.The second:Because of the scarcity and heterogeneity of resources in China’s venture capital market, venture capital institutions have the need of resource dependence generally, there are mutual resource dependence relation between venture capital institutions who participate in the syndication. The third:In China’s venture capital market exists syndicate relational network generally, venture capital institutions tend to co-investment with institutions who within their own relatinal network, there are relational network between venture capital institutions who participate in the syndication. Finally, the writer of this paper have proposed three personal views on future research directions about the field of syndication, in order to throw out a minnow to catch a whale.