Study on China's VC Network Communities: Structure Recognition, Dynamic Evolution and Preference Features

Abstract

Abstract:

Starting with the analysis of the "clustering" phenomenon of venture investments in China's capital markets, this paper, based on the CVSource database, dynamically detects the structure of china's VC network communities with the Girvan-Newman algorithm, and discusses the structure stability. Finally, it studies the stability of the community status of VCs and the characteristics of preference between venture capital institutions. The results show that the community phenomenon is widespread and increasingly significant in China's VC network. The structure of China's VC network communities changes continuously and stably. The characteristics of China's VC network communities indicate institutions prefer partners that are heterogeneous in investment industry feature but homogeneous in investment stage and geographical distribution features. The analyses of VC network Communities contribute to study of VCs investment behavior at the network communities level, and offer an interesting new angle to look further into VC's network behavior.

Key words: venture capital, network communities structure, stability, preference features

Luo Ji, Dang Xinghua. Study on China's VC Network Communities: Structure Recognition, Dynamic Evolution and Preference Features[J]. , 2016, 28(5): 61-72.

References

[1] Deli D. N., Santhanakrishnan M. Syndication in Venture Capital Financing[J]. Financial Review, 2010,45(3):557-578
[2] Manigart S., Lockett A., Meuleman M., et al. Venture Capitalists' Decision to Syndicate[J]. Entrepreneurship Theory and Practice, 2006,30(2):131-153
[3] MacLean M., Mitra D., Wielemaker M. Less-Versus Well-Developed Venture Capital Networks: The Venture Capital Acquisition Process in New Brunswick[J]. Journal of Small Business & Entrepreneurship, 2010,23(4):527-542
[4] De Carvalho A. G., Calomiris C. W., De Matos J. A. Venture Capital as Human Resource Management[J]. Journal of Economics and Business, 2008,60(3):223-255
[5] Tykvová T., Schertler A. Cross-Border Venture Capital Flows and Local Ties: Evidence from Developed Countries[J]. The Quarterly Review of Economics and Finance, 2011,51(1):36-48
[6] Hochberg Y. V., Ljungqvist A., Lu Y. Whom You Know Matters: Venture Capital Networks and Investment Performance[J]. The Journal of Finance, 2007,62(1):251-301
[7] 董建卫,党兴华,陈蓉.风险投资机构的网络位置与退出期限:来自中国风险投资业的经验证据[J]. 管理评论, 2012,24(9):49-56
[8] Hochberg Y. V., Lindsey L. A., Westerfield M. M. Economic Ties: Evidence from Venture Capital Networks[R]. Northwestern University, Evanston, IL, 2011
[9] Prabhala N., Bubna A., Das S. Venture Capital Communities[R]. University of Maryland, Baltimore, MD, 2011
[10] Bubna A., Das S. R., Prabhala N. What Types of Syndicate Partners Do Venture Capitalists Prefer? Evidence from VC Communities[R]. Indian School of Business, New Delhi, DEL, 2013
[11] Grant R. M., Baden-Fuller C. A Knowledge Accessing Theory of Strategic Alliances[J]. Journal of Management Studies, 2004, 41(1):61-84
[12] Matusik S. F., Fitza M. A. Diversification in the Venture Capital Industry: Leveraging Knowledge under Uncertainty[J]. Strategic Management Journal, 2012,33(4):407-426
[13] Alexy O. T., Block J. H., Sandner P., et al. Social Capital of Venture Capitalists and Start-Up Funding[J]. Small Business Economics, 2012,39(4):835-851
[14] Gompers P. A., Lerner J. The Venture Capital Cycle[M]. Cambridge: MIT Press, 2004
[15] Cestone G., White L., Lerner J. The Design of Syndicates in Venture Capital[R]. Harvard University, Cambridge, MA, 2007
[16] Du Q. Birds of a Feather or Celebrating Differences? The Formation and Impact of Venture Capital Syndication[D]. University of British Columbia, 2011
[17] Gompers P., Mukharlyamov V., Xuan Y. The Cost of Friendship[R]. NBER, Cambridge, MA, 2012
[18] Sorensen M. Learning by Investing: Evidence from Venture Capital[J/OL]. Ssrn Electronic Journal, 2007
[19] Simon H. A. The Architecture of Complexity[J]. Proceedings of the American Philosophical Society, 1962,106(6):467-482
[20] Girvan M., Newman M.E. Community Structure in Social and Biological Networks[J]. Proceedings of the National Academy of Sciences, 2002,99(12):7821-7826
[21] Newman M. E. Fast Algorithm for Detecting Community Structure in Networks[J]. Physical Review E, 2004,69(6):66-133
[22] Ravasz E., Somera A. L., Mongru D. A., et al. Hierarchical Organization of Modularity in Metabolic Networks[J]. Science, 2002,297(5586):1551-1555
[23] Guimera R., Amaral L. A. N. Functional Cartography of Complex Metabolic Networks[J]. Nature, 2005,433(7028):895-900
[24] Memon N., Kristoffersen K. C., Hicks D.L., et al. Detecting Critical Regions in Covert Networks: A Case Study of 9/11 Terrorists Network[C]. The Second International Conference on Availability, Reliability and Security, 2007
[25] Stanoevskaslabeva K. Toward a Community-Oriented Design of Internet Platforms[J]. International Journal of Electronic Commerce, 2002,6(3):71-95
[26] 孙中欣.社会学视野中的网络社区[J]. 社会, 2000,13(8):40-41
[27] 王琪.网络社群:特征、构成要素及类型[J]. 前沿, 2011,279(1):166-169
[28] 王平,陈启杰,宋思根.情境因素对网络社群中消费者生成内容行为的影响研究——以IT产品消费为例[J]. 财贸经济, 2012,363(2):124-131
[29] 杜海峰,悦中山,李树茁.基于模块性指标的动态网络社群结构探测方法[J]. 系统工程理论与实践, 2009,29(3):162-171
[30] 悦中山,杜海峰,李树茁,等.农民工小团体现象的探测与分析——基于社会支持网络的研究[J]. 社会, 2009,29(2):131-146
[31] Fortunato S. Community Detection In Graphs[J]. Physics Reports, 2010,486(3):75-174
[32] Goldfarb B., Kirsch D., Miller D. A. Was there Too Little Entry during the Dot Com Era?[J]. Journal of Financial Economics, 2007,86(1):100-144
[33] Porter M. E. Location, Competition, and Economic Development: Local Clusters in a Global Economy[J]. Economic Development Quarterly, 2000,14(1):15-34
[34] Granovetter M. Economic Action and Social Structure: The Problem of Embeddedness[J]. American Journal of Sociology, 1985, 91(3):481-510
[35] Bottazzi L., Da Rin M., Hellmann T. F. The Importance of Trust for Investment: Evidence from Venture Capital[R]. NBER, Cambridge, MA, 2011
[36] Gulati R. Does Familiarity Breed Trust? The Implications of Repeated Ties for Contractual Choice in Alliances[J]. Academy of Management Journal, 1995,38(1):85-112
[37] Granovetter M. S. The Strength of Weak Ties[J]. American Journal of Sociology, 1973,78(6):1360-1380
[38] Uzzi B. Social Structure and Competition in Interfirm Networks: The Paradox of Embeddedness[J]. Administrative Science Quarterly, 1997,42(2):35-67
[39] 潘庆华,达庆利.创业投资公司联合投资的动因及合作策略的选择[J]. 经济问题探索, 2006,18(4):63-68
[40] 彭华涛,谢冰.联合风险投资的网络特性与价值溢出机理分析[J]. 管理工程学报, 2005,19(4):48-51
[41] 王雷.联合风险投资合作伙伴的选择[J]. 统计与决策, 2011,331(7):183-186
[42] Burt R. S. Decay Functions[J]. Social Networks, 2000,22(1):1-28
[43] Faris R., Felmlee D. Status Struggles: Network Centrality and Gender Segregation in Same-Sex and Cross-Gender Aggression[J]. American Sociological Review, 2011,76(1):48-73
[44] Newman M. E., Girvan M. Finding and Evaluating Community Structure in Networks[J]. Physical Review E, 2004,69(2):26-113
[45] Newman M. E. Finding Community Structure in Networks Using the Eigenvectors of Matrices[J]. Physical Review E, 2006,74(3):36-104
[46] Davison A. C., Hinkley D. V. Bootstrap Methods and Their Application[M]. Cambridge: Cambridge University Press, 1997
[47] 王艳,侯合银.创业投资辛迪加网络结构测度的实证研究[J]. 财经研究, 2010,36(3):46-54
[48] Alba R. D. A Graph-Theoretic Definition of a Sociometric Clique[J]. Journal of Mathematical Sociology, 1973,3(1):113-126
[49] Carrington P. J., Scott J., Wasserman S. Models and Methods in Social Network Analysis[M]. Cambridge: Cambridge University Press, 2005