The Influence Of Venture Capital Investment Network On The Performance Of Investment Institutions

In recent years,venture capital has become a more and more important force in China’s capital market,especially for small and medium-sized start-up enterprises that are difficult to obtain funds from traditional financing methods,the injection of venture capital has become a strong support to promote the development of enterprises.With the proposal of "Mass Entrepreneurship and Innovation",the investment of venture capital institutions will play a more obvious role in the growth of enterprises.This paper selects 100 venture capital institutions with the largest number of cumulative investment events from 2012 to 2021,and makes detailed statistics on their cumulative number of investment events,joint investment,next round of successful financing enterprises,exiting enterprises,IPO enterprises,establishment time,amount of capital under management,number of funds under management,etc.Taking 5 years as a time window,using social network analysis method and UCINET software to analyze the network formed by venture capital institutions from 2012 to 2016;Using the method of multiple linear regression,the data of venture capital network formed from 2012 to 2016 as the main characteristic index,and the exit rate and the next round of successful financing rate of investment institutions from 2017 to 2021 as investment performance indicators of venture capital institutions,through model settings and variable definitions,by using STATA software,this paper empirically analyzes the influence of main characteristic indexes of venture capital network on the investment performance of venture capital institutions;And further analyze the moderating effect of the investment institution’s operating time on the above effects.On the basis of the above analysis,the method of extending time window is adopted,and the venture capital data of ten years from 2012 to 2021 is used to reconstruct the network of venture capital institutions,calculate the relevant indicators,and regress the above models to conduct robustness tests.The study found that only 4 of the 100 investment institutions had no joint investment behavior from 2012 to 2016,and all of them had joint investment behavior from 2012 to 2021.The network density between 2012 and 2021 was significantly higher than that between 2012 and 2016,indicating that compared with the entire ten years,the links between some institutions and other institutions in the investment network formed in the first five years were relatively loose.The 3 kinds of relative centrality of venture capital institutions(relative centrality ND,relative proximity centrality CD,relative intermediary centrality BD)and relationship stability(ST)are positively correlated not only with the exit rate(ER),but also with the success rate of the next round of financing(SRN);The operating time(TI)of venture capital institutions strengthens the influence of relative degree centrality and relative closeness centrality on the exit rate,and strengthens the influence of relative degree centrality and relative closeness centrality on the successful financing rate of the next round;However,the influence of relative intermediary centrality and relationship stability on the exit rate and the next round of successful financing rate is different.This paper not only analyzes the impact of the three relative centralities and relationship stability of the venture capital network on the exit rate,but also analyzes the impact on the success rate of the next round of financing.To a certain extent,it enriches the application of social network in venture capital,makes a useful supplement to the literature on venture capital performance,and also has certain practical significance for venture capital institutions and start-up enterprises.