The Top 100 Networked VCs (Reid's at #18)
Is it any surprise that the 18th most connected venture capitalist also founded the world's largest online business networking site! :) BTW, I do work at that company and consider working with Reid, one of the many perks LinkedIn has to offer.
If you're wondering how TechCrunch came up with the #s, check out the rationale below or feel free to skim through 52 pages of analysis embedded above.
If this is true, then who are the most connected venture firms and angel investors today? Vijay Dondeti, a graduate student in bioinformatics, applied the analysis in the Hochberg paper to about 2,700 investors in CrunchBase who participated in over 3,300 startup funding rounds between 2006 and 2008. He scored each investor based on how well connected they are to other investors as well as how well-connected their co-investors are to other investors. “In summary,” says Dondeti, “to get a high score, you need to co-invest often with others that also co-invest often.”
And, why do you think being a networked venture capitalist is important, besides the obvious? Better Returns.
The more co-investors a venture firm has, the better its network. The better its network, the better its overall returns. The correlation between the size of a venture firm’s network and its returns may have something to do with better access to deal flow, talent, advisers, potential customers, and potential exits.
Read more here.
