We examine how venture capital (VC) firms use partnering strategies to address resource dependencies generated by using syndication invitations as a source of dealflow. While co-operation with other organizations allows access to resources, the reliance on these resources makes an organization dependent on the continuity of interfirm co-operation (Pfeffer & Salancik 1978; Singh 2005). VC firms, therefore, need to manage this dependency actively.

We hypothesize that the higher the dependence on external dealflow, the more VC firms invest on existing relationships to secure continued deal flow. We expect that the dependence is positively related to the level of reciprocity in the syndication invitations, concentration of invitations to a small set of partners, and to stability of partner portfolio. Furthermore, we expect that this relationship will be negatively moderated by the status of the focal VC firm and positively moderated by the intensity of competition.