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Whom You Know Matters: Venture Capital Networks and Investment Performance
Many financial markets are characterized by strong relationships and networks, rather than arm’s-length,
spot-market transactions, according to the authors. They examine the performance consequences of this organizational choice in the context of relationships established when VCs syndicate portfolio company investments, using a comprehensive sample of U.S. based VCs over the period 1980 to 2003.
Link
http://www.kellogg.northwestern.edu/faculty/hochberg/htm/HLL.pdf