A novel clustering approach to bipartite investor-startup networks

Théophile Carniel, José Halloy and Jean-Michel Dalle

PLOS ONE, 2023, vol. 18, issue 1, 1-20

Abstract: We propose a novel similarity-based clustering approach to venture capital investors that takes as input the bipartite graph of funding interactions between investors and startups and returns clusterings of investors built upon 5 characteristic dimensions. We first validate that investors are clustered in a meaningful manner and present methods of visualizing cluster characteristics. We further analyze the temporal dynamics at the cluster level and observe a meaningful second-order evolution of the sectoral investment trends. Finally, and surprisingly, we report that clusters appear stable even when running the clustering algorithm with all but one of the 5 characteristic dimensions, for instance observing geography-focused clusters without taking into account the geographical dimension or sector-focused clusters without taking into account the sectoral dimension, suggesting the presence of significant underlying complex investment patterns.

Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:plo:pone00:0279780

DOI: 10.1371/journal.pone.0279780

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