The Impact Of Network Size And 2 Step Reach On Venture Capital Performance

With the syndication investment becoming more and more important and common in the field of venture capital,the venture capital industry presents obvious network characteristics.At the same time,the development of social network theory and method is more and more perfect,especially in the past decade,using social network theory and method to research venture capital network has become an important field.Although,the research on venture capital network has made some achievements at home and abroad,in the context of human relations of China society,There is few studies on the effect of network scale on venture capital performance.In particular,the impact of distance between members on performance is worth further study.Specifically,This article mainly combines social network theory with knowledge-based theory,On the basis of discussing the influence of the structural characteristics of external social network on investment performance,this paper adds the research on the characteristics of its own knowledge attribute to regulate it.Because in the venture capital network,the information,knowledge and other resources obtained by investment institutions are not only related to the network size,but also related to the path length between network partners.Therefore,firstly this paper proposes the research hypothesis that the impact of network size on investment performance by collecting literature.Next,we measure the knowledge attribute from two aspects of knowledge depth and knowledge breadth,and put forward the research hypothesis that the relationship between network scale and investment performance is regulated by them.Then,through the collection of literature,we put forward the research hypothesis of the impact of 2-step reach on investment performance;we still measure the knowledge attribute from the perspective of knowledge depth and knowledge breadth,and put forward the research hypothesis that the relationship between2-step reach and investment performance is regulated by them.The above research data comes from wind database,collecting 1207 rounds of investment data of 198 investment institutions.Using UCINET and SPSS software measure variables and making an empirical test on the research hypothesis.Finally,draw the research conclusion and put forward relevant suggestions according to the research conclusion.The results show that:(1)There is an inverted U-shaped relationship between network size and venture capital performance.The network size of syndication investment among venture capital is not the larger the better.A moderate network size is the best way to improve investment performance.(2)The depth of knowledge has a significant moderating effect on the relationship between network size and venture capital performance;however,the breadth of knowledge has no significant moderating effect.(3)There is an inverted U-shaped relationship between 2-step accessibility and venture capital performance.The distance between network members should not be too close or too distant.A proper distance is conducive to achieve the maximization of investment performance.(4)Knowledge depth and knowledge breadth play a significant role in regulating the relationship between 2-step reach and venture capital performance.