Whom You Know Matters: Venture Capital Networks and Investment Performance

By Yael V. Hochberg, Alexander P. Ljungqvist, Yang-Kai Lu. 2007

1,879 citations recorded by the source corpus.

Subfields: Accounting, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/66a121d2702a94cded555046d3c2a7dadc626b87

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

In Strategy and Management

Citations in the corpus

Crowdfunding: Geography, Social Networks, and the Timing of Investment Decisions (2015, positive): “Consistent with the social networks results in Hochberg, Ljungqvist, and Lu (2007), Hsu (2007), and elsewhere, we find that networks affect investment patterns and that their relationship can help explain patterns in home bias (Seasholes and Zhu 2005).”
Boardroom Centrality and Firm Performance (2013, positive): “…firms in a line network. characterization of well-connectedness is also consistent with prior and related literature in finance (e.g., Hochberg et al., 2007) and allows us to examine the sensitivity of our findings to alternative concepts and measurements of the underlying construct…”
The Role of Accelerator Designs in Mitigating Bounded Rationality in New Ventures (2018, methodology): “Specifically, we measured the percentage of ventures in each cohort that had exited via acquisition as of August 2017 (there were no IPOs) (Hochberg, Ljungqvist, and Lu, 2007; Garg and Eisenhardt, 2017).”
The Economic Impact of Social Ties: Evidence from German Reunification* (2011, neutral): “…(Munshi (2003), Laschever (2007), and Beaman (2008)) and informal insurance (e.g. Weerdt and Dercon (2006)) to performance in the financial industry (Cohen, Frazzini, and Malloy (2008), Hochberg, Ljungqvist, and Lu (2007), and Kuhnen (2009)) and agricultural yields (Conley and Udry (2009)).”
A comparison of the effect of angels and venture capitalists on innovation and value creation (2016, methodology): “ventures by employing a parametric accelerated time-to-exit model with log-normal distribution (a hazard model with log time as dependent variable), similar to Hochberg et al. (2007).”
Swimming with Sharks: Technology Ventures, Defense Mechanisms and Corporate Relationships (2008, methodology): “We used a VC’s eigenvector centrality in venture capital syndication networks (Bonacich, 1972; Hochberg, Ljungqvist, and Lu, 2007) to rank the prominence of a VC.”
What matters, matters differently: a conjoint analysis of the decision policies of angel and venture capital investors (2014, background): “Also, VCs often require seats on the board and bring their professional connections to suppliers, distributors, and other relevant stakeholders to the new venture (Hochberg, Ljungqvist, and Lu 2007).”
Resources as dual sources of advantage: Implications for valuing entrepreneurial‐firm patents (2013, background): “Although information problems pervade entrepreneurial capital markets (e.g., Dushnitsky and Shaver, 2009; Hochberg et al ., 2007; Stuart et al ., 1999), the efficacy of patents as a strategic solution to such problems was previously unclear.”
Do school ties between auditors and client executives influence audit outcomes (2016, neutral): “, 2010), venture capital investments (Hochberg et al., 2007), corporate investments (Schmidt, 2015), and financing decisions (Engelberg et al.”
The cost of friendship (2016, neutral): “Our paper is also related to the venture capital literature examining networks and connections as well as syndication decisions (e.g., Lerner, 1994; Hochberg et al., 2007; Hochberg et al., 2011; Gompers and Xuan, 2010; Tian, 2012).”
The Making of an Investment Banker: Stock Market Shocks, Career Choice, and Lifetime Income (2008, background): “…broader investment banking community hint at possible reasons for the strong persistence in finance careers that I demonstrate below.1 For example, Hochberg, Ljungqvist, and Lu (2007) show the importance of networks in venture capital and Kaplan and Schoar (2005), Brown, Harlow, and Starks…”