TY  - CHAP
AB  - In this chapter we examine the process by which new firms become central actors within their industry networks. We focus, in particular, on how relatively new venture capital (VC) firms become more central within investment syndication networks. We present a model that captures the relationships among (1) the social capital and status of the new VC firm's founders, (2) the VC firm's resource endowments, (3) the VC firm's ability to forge relationships with other prestigious and central venture capital firms, (4) the visibility-enhancing performance of portfolio firms, and (5) the urgency and effort exhibited by the new VC as it pursues these opportunities. These factors combine to shape a new VC's journey from the periphery to the center of its industry network. To illustrate these processes, we develop in-depth case studies of Benchmark Capital and August Capital, two VC firms founded in 1995. We then elaborate upon the enacted nature of resource and opportunity constraints and conclude with a discussion of how new firms create their own self-fulfilling prophecies.
VL  - 25
SN  - 978-0-7623-1442-3, 978-1-84950-531-4/0742-3322
DO  - 10.1016/S0742-3322(08)25016-3
UR  - https://doi.org/10.1016/S0742-3322(08)25016-3
AU  - Fund Bret R.
AU  - Pollock Timothy G.
AU  - Baker Ted
AU  - Wowak Adam J.
ED  - Joel A.C. Baum
ED  - Timothy J. Rowley
PY  - 2008
Y1  - 2008/01/01
TI  - Who's the new kid? The process of developing centrality in venture capitalist deal networks
T2  - Network Strategy
T3  - Advances in Strategic Management
PB  - Emerald Group Publishing Limited
SP  - 563
EP  - 593
Y2  - 2024/09/21
ER  -