The DOI matches its Crossref record; 2 of the 2 references it cites were found in a registry or an index.
Whom You Know Matters: Venture Capital Networks and Investment Performance
Open accessAbstract
Many financial markets are characterized by strong relationships and networks, rather than arm's‐length, spot market transactions. We examine the performance consequences of this organizational structure in the context of relationships established when VCs syndicate portfolio company investments. We find that better‐networked VC firms experience significantly better fund performance, as measured by the proportion of investments that are successfully exited through an IPO or a sale to another company. Similarly, the portfolio companies of better‐networked VCs are significantly more likely to survive to subsequent financing and eventual exit. We also provide initial evidence on the evolution of VC networks.
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Cites
What do venture capitalists do?
Gorman, M., & Sahlman, W. A. (1989) · Journal of Business Venturing · doi:10.1016/0883-9026(89)90014-1 · Cited by 1,371
Syndicated investments by venture capital firms: A networking perspective
Bygrave, W. D. (1987) · Journal of Business Venturing · doi:10.1016/0883-9026(87)90004-8 · Cited by 386
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Zhang, S., Wu, Z., Wang, Y., & Hao, Y. (2021) · Journal of Environmental Management · doi:10.1016/j.jenvman.2021.113159 · Cited by 659
Field, L., Lowry, M., & Mkrtchyan, A. (2013) · Journal of Financial Economics · doi:10.1016/j.jfineco.2013.02.004 · Cited by 561
Degree Centrality, Betweenness Centrality, and Closeness Centrality in Social Network
Zhang, J., & Luo, Y. (2017) · Proceedings of the 2017 2nd International Conference on Modelling, Simulation and Applied Mathematics (MSAM2017) · doi:10.2991/msam-17.2017.68 · Cited by 445
The Importance of Trust for Investment: Evidence from Venture Capital
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Metadata
- Authors
- HOCHBERG, Y. V., LJUNGQVIST, A., & LU, Y.
- Venue
- The Journal of Finance
- Publisher
- Wiley
- Published
- 2007-01-11
- Volume
- 62
- Issue
- 1
- Pages
- 251-301
- ISSN
- 0022-1082 (ISSN-L)
- 1540-6261
- OpenAlex
- W3122371828
- Cited by
- 1,848
- References
- 2
- FWCI
- 262.84
- Type
- journal article
- Language
- en
- Open access
- bronze
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- HOCHBERG, Y. V., LJUNGQVIST, A., & LU, Y. (2007). Whom You Know Matters: Venture Capital Networks and Investment Performance. The Journal of Finance. https://doi.org/10.1111/j.1540-6261.2007.01207.x
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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
