Network, network position and the deal flow of venture capital firms [Elektronische Ressource] / vorgelegt von Ingo Böhner

Iboehner

Informations

• Publié par: rheinisch-westfalischen_technischen_hochschule_-rwth-_aachen
• Publié le: 01 janvier 2007
• Nombre de lectures: 4
• Langue: English
• Poids de l'ouvrage: 1 Mo

Extrait

Network, Network Position and the Deal Flow of
Venture Capital Firms



Von der Fakultät für Wirtschaftswissenschaften der
Rheinisch-Westfälischen Technischen Hochschule Aachen
zur Erlangung des akademischen Grades eines Doktors der
Wirtschafts- und Sozialwissenschaften genehmigte Dissertation



vorgelegt von
Dipl.-Kfm. Ingo Böhner
aus Essen





Berichter: Univ.-Prof. Dr.rer.pol.habil. Malte Brettel
Univ.-Prof. Dr.rer.pol. Wolfgang Breuer

Tag der mündlichen Prüfung: 09.05.2007

Diese Dissertation ist auf den Internetseiten der Hochschulbibliothek online
verfügbar. II
Content Overview
1 Introduction to the Topic ..............................................................................................1
1.1 Problem Definition and Objectives .......................................................................1
1.2 Methodology and Structure of the Study ..............................................................5
2 Definitions and Basic Concepts....................................................................................8
2.1 Venture Capital......................................................................................................8
2.2 Deal Flow............................................................................................................41
2.3 Summary.............................................................................................................55
3 Theoretical Foundation...............................................................................................57
3.1 Approach to Theory Selection.............................................................................57
3.2 Social Network Analysis.....................................................................................68
3.3 The Concept of Social Capital92
3.4 Research Design................................................................................................111
3.5 Summary and Detailed Structure of the Research Design ................................144
4 Derivation of Hypotheses .........................................................................................146
4.1 Hypotheses on the General Importance of the Contact Network and of Other
Venture Capital Firms as Source of Deal Flow.................................................146
4.2 Hypotheses on the Connection between Network Measures and Deal Flow....152
4.3 Summary of Hypotheses ...................................................................................161
5 Data Collection and Methodological Approach .......................................................162
5.1 Data Collection..................................................................................................162
5.2 Statistics in Social Network Analysis ...............................................................183
6 Results of the Empirical Study .................................................................................192
6.1 General Importance of the Contact Network and of Other Venture Capital
Firms as Source of Deal Flow ...........................................................................192
6.2 Characterization of the Entire Network Structure.............................................193
6.3 Connection between Network Position, Firm Attributes, and Deal Flow.........200
7 Discussion of the Results and Implications for Management and Research............227
III
7.1 Discussion of the Results ..................................................................................227
7.2 Summary of the Results ....................................................................................265
7.3 Implications for the Management of Venture Capital Firms ............................267
7.4 Implications for Research271
8 Summary of the Study ..............................................................................................277

Appendix: Questionnaire of the Empirical Study .........................................................279
Bibliography..................................................................................................................285
IV
Table of Contents
1 Introduction to the Topic ..............................................................................................1
1.1 Problem Definition and Objectives .......................................................................1
1.2 Methodology and Structure of the Study ..............................................................5
2 Definitions and Basic Concepts....................................................................................8
2.1 Venture Capital......................................................................................................8
2.1.1 Definition of the Term and Venture Capital as Method of Financing ......8
2.1.2 Development and International Comparison of the German Venture
Capital Market.........................................................................................12
2.1.3 Venture Capital Firms and Portfolio Companies ....................................20
2.1.3.1 Types of Venture Capital Providers .........................................20
2.1.3.2 Characteristics of Portfolio Companies23
2.1.3.3 Investment Stages.....................................................................25
2.1.3.4 The Value Chain of Venture Capital Firms..............................29
2.1.4 Syndicated Venture Capital Investments ................................................34
2.1.4.1 Definition of Syndication .........................................................34
2.1.4.2 Lead-Investor and Co-Investor.................................................35
2.1.4.3 General Rationales for Syndication..........................................36
2.2 Deal Flow............................................................................................................41
2.2.1 Definition of Deal Flow ..........................................................................41
2.2.2 Quantity and Quality of Deal Flow43
2.2.3 Literature Review....................................................................................45
2.2.4 Generation of Deal Flow .........................................................................48
2.2.4.1 Search Activities of Venture Capital Firms .............................48
2.2.4.2 Sources of Deal Flow ...............................................................50
2.3 Summary.............................................................................................................55
3 Theoretical Foundation...............................................................................................57
3.1 Approach to Theory Selection.............................................................................57
3.1.1 Theories Commonly Applied to Financial Markets................................57
3.1.2 Reasons for Abstaining from Frequently Applied Theories ...................64
3.1.3 Requirements for the Theoretical Foundation for this Study..................67
3.2 Social Network Analysis.....................................................................................68
3.2.1 Economic Perspectives on Social Networks ...........................................68
3.2.2 Social Network Analysis as Method to Examine Relationships .............71
3.2.3 Fundamental Concepts of Social Network Analysis...............................73
3.2.3.1 Basic Terms..............................................................................73
3.2.3.2 Measurement and Collection of Network Data........................75
3.2.4 History and Background of Social Network Analysis ............................77
3.2.4.1 Sociometric Analysis and Graph Theory .................................77
V
3.2.4.2 Interpersonal Relations and Cliques.........................................80
3.2.4.3 The Manchester Anthropologists .............................................82
3.2.4.4 Synthesizing the Developments at Harvard University ...........83
3.2.5 Research Areas and Typology of Network Studies.................................85
3.2.5.1 Research Areas.........................................................................85
3.2.5.2 Typology of Network Studies ..................................................88
3.3 The Concept of Social Capital.............................................................................92
3.3.1 Description of Social Capital and Delineation to Other Forms of
Capital .....................................................................................................93
3.3.2 Dimensions and Definition of Social Capital..........................................95
3.3.3 Social Capital Theories ...........................................................................98
3.3.3.1 Information or the Theory on the Strength of Weak Ties ......101
3.3.3.2 Power through Structural Autonomy or the Structural Hole
Theory ....................................................................................103
3.3.3.3 Power through Social Influence or the Significance of
Strong Ties for Different Types of Actors .............................105
3.3.3.4 Solidarity in Groups or the Strength of Strong Ties.......