Abstract

This study examines how compositional attributes of VC syndication influence different aspects of informational benefits startups can obtain by virtue of VC affiliation, which in turn affect startups’ likelihood of alliance formation. I argue that the size of VC syndication, and the experience and diversity of VC syndication partners relate to the three primary dimensions of informational benefits – information volume, information relevance and information diversity – respectively. Empirical evidence shows that startups financed by a greater number of VC firms, by younger VC firms, and by VC firms of different types are more likely to form alliances.

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