Peer networks in venture capital

Hoan Soo Lee

Journal of Empirical Finance, 2017, vol. 41, issue C, 19-30

Abstract: I identify advantages from strategic networks in venture capital investments, estimating large impacts. I use the experiment underlying the formation of HBS MBA VCs and entrepreneurs. Random assignment of HBS MBA graduates provides a key exogenous variation. Being connected to peer VC firms and startups leads to more deals and larger AUM. An endowment of one-additional entrepreneur leads to raising $23.47M more, and one-additional VC leads to raising $10.48M more than the average size of HBS funds. Results suggest that the well-connected venture capitalist may be successful by attaining access to great deals.

Keywords: Networks; Venture capital; Peer effects (search for similar items in EconPapers)
JEL-codes: G23 G32 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0927539816301621
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:empfin:v:41:y:2017:i:c:p:19-30

DOI: 10.1016/j.jempfin.2016.12.006

Access Statistics for this article

Journal of Empirical Finance is currently edited by R. T. Baillie, F. C. Palm, Th. J. Vermaelen and C. C. P. Wolff

More articles in Journal of Empirical Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().