Venture Capital Communities

73 Pages Posted: 16 Sep 2012 Last revised: 14 Feb 2019

See all articles by Amit Bubna

Amit Bubna

Indian School of Business

Sanjiv Ranjan Das

Santa Clara University - Leavey School of Business

Nagpurnanand Prabhala

The Johns Hopkins Carey Business School

Multiple version iconThere are 2 versions of this paper

Date Written: January 03, 2019

Abstract

While venture capitalists (VCs) can choose from thousands of potential syndicate partners, many co-syndicate with small groups of preferred partners. We term these groups “VC communities.” We apply computational methods from the physical sciences to three decades of syndication data to identify these communities. We find that communities comprise VCs that are similar in age, connectedness, and functional style but undifferentiated in spatial locations. Machine learning tools classify communities into three groups roughly ordered by the age and reach. Community VC financing is associated with faster maturation and greater innovation especially for early-stage firms without an innovation history.

Keywords: Venture capital, syndication, community detection, social networks, boundaries of the firm, machine learning

JEL Classification: G20, G24

Suggested Citation

Bubna, Amit and Das, Sanjiv Ranjan and Prabhala, Nagpurnanand, Venture Capital Communities (January 03, 2019). Available at SSRN: https://ssrn.com/abstract=2146955 or http://dx.doi.org/10.2139/ssrn.2146955

Amit Bubna

Indian School of Business ( email )

Hyderabad, Gachibowli 500 019
India

Sanjiv Ranjan Das (Contact Author)

Santa Clara University - Leavey School of Business ( email )

Department of Finance
316M Lucas Hall
Santa Clara, CA 95053
United States

HOME PAGE: http://srdas.github.io/

Nagpurnanand Prabhala

The Johns Hopkins Carey Business School ( email )

100 International Drive
Baltimore, MD 21202
United States
+1 410 234 4532 (Phone)

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
131
Abstract Views
2,452
rank
130,732
PlumX Metrics