The Effects of Intra- and Extra-Industry Networks on Performance of Venture Capital Portfolio Firms
This study examines the influence of intra- and extra-industry networks on firm performance by using data on 1,264 UK venture capital (VC)–backed start-up companies. The ventures’ network was operationalized by connecting together the various portfolio companies sharing the same investor. Regression results show that the venture’s network has a strong impact on firm’s success. Yet, whereas extra-industry ties are directly and positively linked to the likelihood of the venture to reach a successful exit, intra-industry ties exert a negative impact on companies’ performances. However, interaction effects show that once a firm establishes ...
Get Venture Capital Networks now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
