CREF TALK

November 8th, 2.30 pm

Venture Capital Networks
Marta Zava, Department of Finance of Bocconi University

In the dynamic realm of early-stage investments, startups and venture capital firms engage in a thrilling dance of risk and reward, seeking the next big breakthrough in a vibrant ecosystem dominated by the right connections. Networks pervade the venture capital (VC) industry. Entrepreneurs pick their fellow founders, investors choose their syndicate partners, and employees decide on their new bosses. Funds co-invest, companies ally. The drivers are beyond the financial reasons: background, friendship, passions, and beliefs play a role in determining the following connections. Innovation and internationalization lie within ties – the same ties that propagate financial shocks, while novel methodologies aim at predicting VC networks and their success.
The seminar will provide a novel perspective on the state of the literature, joining qualitative, quantitative, and methodologic aspects, and suggest applying novel approaches to comprehend outcome-oriented research questions. Consequently, it will introduce a dynamic temporal fitness model that quantifies funding attraction through financial ties. Lastly, the role of co-founding connections is analyzed through an additional novel network measure.