150 Venture Capital Networks: Present and Future

84 Pages Posted: 28 Oct 2023 Last revised: 10 Oct 2024

See all articles by Marta Zava

Marta Zava

Bocconi University - Department of Finance; Goethe University Frankfurt

Stefano Caselli

Bocconi University - Department of Finance

Date Written: November 13, 2023

Abstract

Although there is wide recognition of the importance of venture capital networks in shaping entrepreneurial outcomes and innovation ecosystems, the complex dynamics of these networks are not yet fully understood. To date, entrepreneurship and finance researchers have tended to focus on dyadic funding relationships within venture capital networks, overlooking the multifaceted and evolving nature of these ecosystems. To address this, we conduct a systematic review of 150 articles published in 61 journals across the Management, Entrepreneurship, Finance, and Network Science disciplines that makes three contributions. First, it proposes a comprehensive definition of venture capital networks and identifies a framework of network roles throughout the investment cycle, from deal sourcing to exit strategies. Second, it demonstrates that the key to understanding how venture capital networks influence entrepreneurial success and innovation is to jointly account for both their structural properties and dynamic evolution. By linking network structures and temporal dynamics, the findings also suggest a theoretical contribution based on the relationship between network topology and the propagation of information, resources, and shocks within the ecosystem. Third, the review underscores that venture capital networks are not just static structures but dynamic systems that adapt and evolve in response to market conditions, technological advancements, and regulatory changes. Our cross-disciplinary review highlights methodological frontiers in network science, including multilayer analyses, high-order interactions, and generative models, that hold promise for advancing our understanding of venture capital networks. We provide researchers with an evidence-based research agenda to guide future inquiry on this vital topic, emphasizing the potential for interdisciplinary collaboration to unlock new insights into the complex dynamics of entrepreneurial finance.

Keywords: Venture Capital, Financial Networks, Venture Capital Networks, Entrepreneurial Finance

JEL Classification: G24, M14, D85, L14

Suggested Citation

Zava, Marta and Caselli, Stefano, 150 Venture Capital Networks: Present and Future (November 13, 2023). Available at SSRN: https://ssrn.com/abstract=4587983 or http://dx.doi.org/10.2139/ssrn.4587983

Marta Zava (Contact Author)

Bocconi University - Department of Finance ( email )

Via Roentgen 1
Milano, MI 20136
Italy

Goethe University Frankfurt ( email )

House of Finance
Theodor-W.-Adorno-Platz 3
Frankfurt, Hesse 60629
Germany

Stefano Caselli

Bocconi University - Department of Finance ( email )

Via Roentgen 1
Milano, MI 20136
Italy

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

Paper statistics

Downloads
192
Abstract Views
551
Rank
309,016
PlumX Metrics