The Impact Of Venture Capital's Syndicated Model On Corporate Value

Venture capital is a kind of equity investment.High-tech and high-growth enterprises are the investment targets with the highest proportion in the venture capital industry,which has two most significant characteristics,namely high risk and high return.The growth of the venture capital industry has also given life to many promising but less well-capitalised start-ups.The development of the venture capital industry has also brought vitality to many start-ups with development prospects but less capital.More and more venture capital institutions have injected capital into such start-ups,helping them helping them make the dramatic transition from obscure small companies to well-known consortiums.In recent years,a significant feature of venture capital financing is investment is often conducted by a syndicate.This means that two or more venture capital firms invest in a company together.As an effective venture capital model,syndicated investment is one of the key fields in academic circles.In recent ten years,China's venture capital industry has made remarkable progress in terms of investment scale,number of investment events and number of funds raised.Therefore,more and more scholars participate in the research of Chinese syndicated venture capital,and get some empirical evidence that is conducive to the development of venture capital.For investment and invested enterprises,it is also of great practical significance to study whether syndicated investment can play a fundamental role in improving enterprise value.This paper takes venture capital of syndicate mode as the entry point,selects 1872 companies in the ten years from 2008 to 2017 as the research object,and USES the financial data in the ten years from 2008 to 2017 as the sample data of panel data model.On the basis of discussing the characteristics and motivations of venture capital institutions using syndicated venture capital model based on previous research results,this paper uses the econometric Statal4 analysis software to analyze the correlation and multiple regression of the model,and mainly analyzes the impact of syndicated venture capital on the value of target enterprises.First,venture capital involvement is significantly positively correlated with the value of the invested enterprise.Secondly,compared with the independent venture capital,the syndicated venture capital plays a more significant role in improving the enterprise value of the invested company.Third,the number of syndicated venture capital institutions has no significant impact on enterprise value,and the shareholding ratio of syndicated venture capital institutions has a positive impact on the enterprise value of the invested companies.