Syndication Network, Centrality and Venture Capital Firm's Performance

Abstract

The uncertainty in the venture capital market contributed to the dependence of venture capitals on syndication network to maintain advantages. While recent research depicted the importance of syndication network to venture capitals as well as local economy, they ignored the differentiation of their position and hence the performance. Based on the example of IDGVC, this paper analyzed the relationship between centrality of syndication network and its performance and proposed that, venture capitals with higher centrality in the syndication network are more capable to identity opportunities and coordinate the others to gain high performance.