Research On The Influence Of Investment Performance Of Venture Capital Moving Between Investment Network Communities

In recent years,the venture capital industry is booming.Through joint investment,investment institutions exchange and interact with each other in their own "circle" of investment.From the network perspective,"circle" has brought more investment opportunities and resources to members.However,at present,the number of venture capital institutions and joint venture investment is growing rapidly.Does information appear redundancy through repeated dissemination in "circle" ? Will institutions consider joining new groups to obtain new resources to improve investment performance? Based on the Chinese market,this paper empirically studies the impact of cross-circle movement of venture capital institutions on investment performance.From the perspective of investment network community,which is a closely related group in investment network,this paper puts forward three hypotheses.Using the early joint investment events of venture capital institutions in China from 2003 to 2018 as samples,this paper analyses the cross-investment network community mobility and the influence of investment performance of venture capital institutions from two aspects: 1)Information redundancy caused by high concentration degree brings negative impact on the investment performance of venture capital institutions.2)In order to obtain new resources,investment institutions move among investment network communities.How does this behavior affect investment performance?The results show that there is an inverted U-shaped effect between the agglomeration of investment networks and investment performance.When agglomeration is low,the increase of agglomeration has a positive impact on investment performance.When agglomeration is further improved,the investment performance of investment institutions will be weakened.There is a significant positive correlation between cross-investment network community mobility and investment performance of venture capital institutions,that is,this behavior will have a positive impact on investment performance.However,there is a significant negative correlation between mobile number and investment performance.It shows that frequent movement will increase the cost of relationship formation in a certain period of time,thus weakening the investment performance.This research enriches the research on the direction of network community in the theory of venture capital network.It provides some suggestions for the practice of investment institutions and has certain practical significance.