|Published:||December 4, 2006|
Most of us have experienced the power of networks. There’s the job found through a friend’s sister’s boyfriend, or the lifelong partner met through a neighbor’s cousin.
But how do networks play into business—particularly the relationship-rich industry of venture capital?
New this year to the HBS faculty, Toby Stuart studies networks and how they enable or impede certain organizational and entrepreneurial behaviors. In a working paper, “The Evolution of Venture Capital Investment Networks,” he and coauthor Olav Sorenson of University of Toronto’s Rotman School of Management examine the effects of geographic distance and a “hot” IPO market on the formation of networks in the venture capital industry.