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Research Outline

Prepared for Abe i. | Delivered November 15, 2019

Syndicated Funding/Investment Industry: Emerging Trends

Goals

  • To identify 5-7 emerging trends in the syndicated funding/investment industry

Early Findings

Global Trends
  •  Increased syndication between Venture Capitalists (VCs) and Angel Investors located in different states, regions, and countries that reduce individual risk, generates greater revenue and increases the potential for later stage, international VC connections. This trend brings together VCs who often invest more locally with Angel Investors and other VCs located around the world. This trend is particularly successful in global peripheral regions including New Zealand, Finland, and Estonia.
  •  Garanti Bank, located in Turkey, used a form of syndicated funding to obtain $1.3 billion in loans from international markets in 2018. Turkey, like New Zealand, Finland, and Estonia, is a developing economy.
  • This is a trend because three countries started with government developed and ran VC programs, due in large part to the size of their economy and their geographical location. New Zealand, Finland, and Estonia are geographically peripheral to areas with high concentrations of VC lenders. They also all have "low volume investment opportunities and limited indigenous sources of VC". The VC programs for all three countries have attracted the attention and investment of internationally located angel investors and VCs. The economies of all three countries are growing due to syndication. Their syndication models can serve as a template for other peripheral countries. Turkey is a developing economy also benefiting from syndicated financing.