TY  - UNPD
A1  - Kräussl, Roman
A1  - Rinne, Kalle
A1  - Sun, Huizhu
T1  - Does family matter? Venture capital cross-fund cash flows
N2  - Venture capital (VC) funds backed by large multi-fund families tend to perform substantially better due to cross-fund cash flows (CFCFs), a liquidity support mechanism provided by matching distributions and capital calls within a VC fund family. The dynamics of this mechanism coincide with the sensitivity of different stage projects owing to market liquidity conditions. We find that the early-stage funds demand relatively more intra-family CFCFs than later-stage funds during liquidity stress periods. We show that the liquidity improvement based on the timing of CFCF allocation reflects how fund families arrange internal liquidity provision and explains a large part of their outperformance.
T3  - CFS working paper series - No. 695 
KW  - Venture capital
KW  - Fund family
KW  - Subsidization
KW  - Liquidity
KW  - Performance
Y1  - 2022
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/68972
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-689720
UR  - https://ssrn.com/abstract=4305129
PB  - Center for Financial Studies
CY  - Frankfurt, M.
ER  -