Across the board the researchers found that venture capitalists tend to co invest in. I deals with other VCs who possess similar characteristics. This was true regardless of whether the similarities were ability bas or affinity bas. For example two VCs . Iwho graduat from the same undergraduate school were . percent more likely to collaborate on a deal than were two VCs from different alma maters.
The probability of collaboration tween
VCs increas by . percent if they were memrs of. I the same ethnic minority group. The data held up with what Gompers had observ qualitatively in his. I two decades of studying . Ithe venture capital industry. There are strong affinity groups with Indian Georgia Phone Number List venture capitalists and entrepreneurs and with Chinese venture . Icapitalists and entrepreneurs Gompers says. And there s sort of a cabal of Jewish entrepreneurs and VCs as well. The team then examin how these similarities had affect the outcomes of the portfolio companies in the study. For the purposes of the paper a successful outcome was defin as one in which a company eventually fil for an initial public offering.
They found that the probability
Of success decreas by percent if two co investors had previously work at the same company—even if they hadn t work there at the same time. the same undergraduate school the success rate dropp by percent. And overall investors who were memrs of the Azerbaijan WhatsApp numbers list same ethnic minority were percent less successful than investors with different ethnic backgrounds. It dawn on the researchers that affinity might make it easier for one venture capitalist to guilt trip another into making a bad deal—doing a favor for a friend. To test for that possibility the team assess the investments according to measures that had proven to indicators of future success according to previous research.
