EIRC Seminar – Giang Nguyen on “Social Networks and Venture Capital Investments Around the World”
Date: Tuesday, May 16th, 2023
Time: 12:00 to 13:30
Paper by: Giang Nguyen (emlyon) and Thu Ha Nguyen (Monash University)
On May 16th, 2023, Giang Nguyen presented and discussed his work on “Social Networks and Venture Capital Investments Around the World”. His presentation fueled a very interactive session, with room for feedback and contributions from colleagues of different fields (sociology, strategy, entrepreneurship, innovation, and entrepreneurial finance).
Thank you Giang for providing so much food for thought and navigating well the sometimes-heated academic debate.
Social Networks and Venture Capital Investments Around the World
By Giang Nguyen & Thu Ha Nguyen
Constructing social networks of large global venture capital (VC) firms, we find that social connections between VC firms increase their syndication likelihood, and the effect is more pronounced when the VC firm pair exhibits a larger experience gap. Importantly, VC firms that are central in social networks tend to lead investment syndicates and achieve superior performance. We document better access to deal flow and value-added services as two channels through which central VC firms improve their investment success. Overall, our results demonstrate the positive value of social networks in VC investments which is beyond what is posed by investment networks.