Does Familiarity among Venture Capital Co-Investors Lead to Higher Performance?
Venture capital (VC) firms repeatedly establish co-investment alliances, namely syndicates. Yet, although the practice of partnering with the same partners over time is widely adopted in the industry, we do not know what is the impact of repeated transactions (i.e., familiarity) on syndicate performance. We build upon alliance literature (e.g., Gulati 1995a, 1995b) that highlighted the importance of familiar alliance partners but did not fully investigate its impact on alliance performance. The few empirical papers going into this direction showed contradictory results. By theorizing that the relationship between familiarity and performance is curvilinear, ...
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