A Reputation-Based Analysis Of Venture Capital Syndicate Network Structure

Based on the dispersive risk,obtain resources,mutual collaboration,and many other considerations,the cooperation between venture capitalists become more frequent.The Formation and operation mechanism of venture capital syndication network under the influence of many factors,of which an important factor is the reputation of venture capitalists.Analyze the effect of reputation to formation and operation of venture capital syndication network can provide help for grasp the risk market operation’s rule and provide useful information for the healthy development of venture capital.In this paper,the venture capitalists include two different types,the good reputation and the bad reputation,Different venture capitalists are different in investment experience,resources and information etc.By constructing two stages of complete and perfect information dynamic game model,the paper analyze the difference of different venture capitalists in project earnings,the proportion of the distribution of benefits,invitation costs and acceptable cost.When satisfied different conditions,the Nash equilibrium can be achieved and form different syndication network structure.This paper use genetic algorithm to explore the changes of syndication network structure in Network density,network centrality etc.The research shows:In market,increase the proportion of good venture capitalists can promote the number of joint investment relations and network density.The profits of the entire market can be greatly improved and achieving positive spill.