An Investigation Report On The Influence Of Informal Network On The Performance Of Venture Capital

With the continuous development of venture capital industry in China,this research is also increasingly rich,especially under the influence of the Internet boom,venture capital is developing rapidly.Many scholars have studied from a different perspective,especially in the investment performance,but few of them studied from the perspective of the informal network.The informal network is a network that is formed through informal communication between venture capital firms in relation to formal networks.In order to explore the importance of the informal network to the venture capital institutions,especially on the level of investment performance,this paper collects the data of the informal communication through the way of survey,and show the way the community map through social network analysis and graph theory.The "point" in the network means the venture capital firm,and "line" means the informal communication relationship between venture capital firms.And via comparing with the formal network,we find the differences between the two in the structure and data.On this basis,through the combination data of survey and database,we conducted an empirical analysis.On the basis of reading a large number of relevant literatures,we take the venture capital exit rate as the dependent variable,and the results of the previous scholars as control variables.And then make a depth study with the position of the venture capital firm in the informal network taken as Independent variables.The results show that the position of the informal network has a significant positive effect on the exit rate including degree,closeness and betweenness.Especially closeness has the greatest impact,that indicate that the higher the ability to control the network,the better the average investment performance.Finally,on this basis,we make suggestions to venture capital institutions and government agencies: they need to focus on building a communication platform and improve the degree of attention for informal communication.