
Working Papers
My research is currenlty focused at the intersection between venture capital and network science.
Who brings investments? Venture Capital through reputation, networks, and influence

This study explores the impact of investors' reputations and networks on startup funding outcomes in the venture capital ecosystem. It introduces a novel metric, the funding attraction index, to quantify an investor's ability to attract follow-on investments for their portfolio companies. The research reveals that a company's likelihood of securing subsequent funding is positively correlated with the influence network of its previous investors. This effect is most pronounced in early-stage deals and diminishes in later stages, though its impact on the amount of capital raised persists. The study also develops an extension of the Sorenson-Heckman model to differentiate between an investor's role in selecting promising companies and their contribution to post-investment success. By highlighting the challenges in objectively quantifying startup quality, the research emphasizes the crucial role of reputation and networks of influence in determining access to resources within the venture capital ecosystem. These findings provide valuable insights into how investor networks influence startup trajectories, potentially aiding both entrepreneurs and investors in navigating the complex venture capital landscape more effectively. The study ultimately contributes to a deeper understanding of the intricate dynamics that shape success in the startup funding process.
How do Venture Capitalists become influential?
(Job Market)

This study investigates how venture capital (VC) investors can move from peripheral to central, influential positions within their networks. Using a comprehensive dataset of US-based VC investments from 2010 to 2021, I analyze 4.5 million dyadic interactions using k-shell decomposition, providing a nuanced measure of investors' network positions. I construct a temporal syndication network and track changes in investors' positions monthly. Through difference-in-differences and triple difference analyses, I identify three paths for peripheral VCs to gain centrality: co-investing with influential VCs, backing their investments, and having their own investments backed by influential VCs. The results show that the third path - having one's investments backed by influential VCs - has the most significant impact on a peripheral VC's rise to influence, regardless of the connecting company's eventual success. This finding highlights the crucial role of network position in VC performance, suggesting that reputation and network effects can sometimes outweigh pure financial performance. This research provides valuable insights into the VC industry's inner workings and offers a strategic roadmap for aspiring VCs to position themselves for growth and increased influence. It underscores the importance of network dynamics in shaping success within the venture capital ecosystem.
150 Venture Capital Networks: Present and Future
(Review)

We offer a systematic review of 150 venture capital networks papers across 61 journals in Management, Entrepreneurship, Finance, and Network Science. First, it offers a comprehensive definition of venture capital networks and outlines a framework of network roles throughout the investment cycle. Second, it emphasizes the importance of considering both structural properties and dynamic evolution to understand how these networks influence entrepreneurial success and innovation. This approach suggests a theoretical link between network topology and the flow of information, resources, and shocks within the ecosystem. Third, it highlights that venture capital networks are dynamic systems adapting to market conditions, technological advancements, and regulatory changes, rather than static structures. The review identifies promising methodological approaches from network science, such as multilayer analyses, high-order interactions, and generative models. It also provides a research agenda for future studies, emphasizing the potential for interdisciplinary collaboration to gain new insights into the complex dynamics of entrepreneurial finance. This comprehensive analysis addresses the current gap in understanding the multifaceted and evolving nature of venture capital ecosystems, moving beyond the traditional focus on dyadic funding relationships.
Midas: Get the Golden Investors

One third of the Venture Capital (VC) money invested in the US comes from Midas investors, the top 100 venture capital investors nominated each year by Forbes. Also, Midas investors’ funding increases chances of success. How to attract them towards backing a business venture? We unveil the mechanism attracting Midas investors through a novel temporal network model focused on nodes’ dynamic fitness, by using the interactions among VCs, Midas investors, companies, and founders. The findings suggest that, while seed stage investors play a significant role, the main attraction channel is through a direct relationship to the founders. Founders who were backed by Midas in their previous project are more likely to get Midas’ investments in their latter venture. The destiny of startups seems set before their birth.
WORKING PAPER SECTION STILL CONSTRUCTION
