Matching in Entrepreneurial Finance Networks

47 Pages Posted: 8 Jul 2016 Last revised: 1 Oct 2017

See all articles by Ricardo Pasquini

Ricardo Pasquini

Universidad Austral - IAE Business School

Gabriela Robiolo

Universidad Austral

Virginia Sarria-Allende

IAE Business School - Universidad Austral

Date Written: September 30, 2017

Abstract

We empirically explore the importance of networks in the match formation of startups and investors. Using a massive network of connections from the entrepreneurial finance setting in California, we estimate a matching model introducing network distance as a key determinant of the value of a prospective match. We find that distance drives matching value and moderates preferences for experience and education. While we corroborate that there is significant sorting along these preferences in realized matches, our results indicate that network distance can potentially outweigh their impact, emphasizing the role of networks in alleviating matching frictions in these markets.

Keywords: Entrepreneurial Finance, Networks

JEL Classification: G24, L26, L14

Suggested Citation

Pasquini, Ricardo and Robiolo, Gabriela and Sarria-Allende, Virginia, Matching in Entrepreneurial Finance Networks (September 30, 2017). 2017 Emerging Trends in Entrepreneurial Finance Conference. Available at SSRN: https://ssrn.com/abstract=2805726 or http://dx.doi.org/10.2139/ssrn.2805726

Ricardo Pasquini (Contact Author)

Universidad Austral - IAE Business School ( email )

Buenos Aires
Argentina

Gabriela Robiolo

Universidad Austral ( email )

Juan de Garay 125
Buenos Aires, 1065
Argentina

Virginia Sarria-Allende

IAE Business School - Universidad Austral ( email )

Buenos Aires
Argentina

Register to save articles to
your library

Register

Paper statistics

Downloads
122
rank
215,987
Abstract Views
582
PlumX