Performance Research On Chinese Venture Investment

Complex network theory has been extensively studied and applied in different areas. In this paper, we used complex network model and theory in the fields of venture capital. We established four different networks, i.e. two types of network whose node are venture capital firms and two types of network whose node are startup-enterprises. The essential features including degree, mean length of the shortest paths, clustering coefficient, the small-world, the scale-free properties and self-similarity for the four networks. Results shown the venture capital firms and startup-enterprises are most located in Guangdong, Beijing, Shanghai, Zhejiang, Jiangsu and other economically developed areas where they can share the capital, information and human resource. What’s more, we have researched the evolution of average degree, clustering coefficient and shortest distance of one of these networks and found that with the time past, the change of average shortest distance is the largest, the average degree trends to rise mainly, and the clustering coefficient keep steady. At last, we also analyzed the relationship between network and business performance. We regard degree or clustering coefficient of the network as a factor which can impact the return on equity. It is shown that, for both kinds of companies, the larger the degree or clustering coefficient is, the better the business performance will be.