Olav Sorenson and Toby E. Stuart<\/strong><\/p>\n

Sociological investigations of economic exchange reveal how institutions and social structures shape transaction patterns among economic actors. This article explores how inter\ufb01rm networks in the U.S. venture capital (VC) market affect spatial patterns of exchange. Evidence suggests that information about potential investment opportunities generally circulates within geographic and industry spaces. In turn, the circumscribed \ufb02ow of information within these spaces contributes to the geographic- and industry-localization of VC investments. Empirical analyses demonstrate that the social networks in the VC community\u2014built up through the industry\u2019s extensive use of syndicated investing\u2014diffuse information across boundaries and therefore expand the spatial radius of exchange. Venture capitalists that build axial positions in the industry\u2019s coinvestment network invest more frequently in spatially distant companies. Thus, variation in actors\u2019 positioning within the structure of the market appears to differentiate market participants\u2019 ability to overcome boundaries that otherwise would curtail exchange.<\/p>\n

American Journal of Sociology<\/a><\/em>, 106 (2001): 1546-1588<\/a><\/span><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Olav Sorenson and Toby E. Stuart Sociological investigations of economic exchange reveal how institutions and social structures shape transaction patterns among economic actors. This article explores how inter\ufb01rm networks in the U.S. venture capital (VC) market affect spatial patterns of exchange. Evidence suggests that information about potential investment opportunities generally circulates within geographic and industry […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[26,29,30],"_links":{"self":[{"href":"https:\/\/www.olavsorenson.net\/index.php?rest_route=\/wp\/v2\/posts\/33"}],"collection":[{"href":"https:\/\/www.olavsorenson.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.olavsorenson.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.olavsorenson.net\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.olavsorenson.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=33"}],"version-history":[{"count":3,"href":"https:\/\/www.olavsorenson.net\/index.php?rest_route=\/wp\/v2\/posts\/33\/revisions"}],"predecessor-version":[{"id":39,"href":"https:\/\/www.olavsorenson.net\/index.php?rest_route=\/wp\/v2\/posts\/33\/revisions\/39"}],"wp:attachment":[{"href":"https:\/\/www.olavsorenson.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=33"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.olavsorenson.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=33"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.olavsorenson.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=33"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}