Whom you know matters: Venture capital networks and investment performance

• 成果类型: Article
• 署名作者: Hochberg, Yael V.; Ljungqvist, Alexander; Lu, Yang
• 署名单位: Northwestern University; New York University; Centre for Economic Policy Research - UK
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/j.1540-6261.2007.01207.x
• 发表日期: 2007
• 页码: 251-301
• 关键词: SYNDICATION; FIRMS

摘要

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.