Venture Capital Networks in Australia: Emerging Structure and Behavioural Implications

Siddiqui, A.I., Marinova, D. & Hossain, A. (2016). Venture capital networks in Australia: emerging structure and behavioural implications. Journal of Management and Sustainability, Vol. 6, No. 2.

15 Pages Posted: 16 Jun 2016

See all articles by Asif Siddiqui

Asif Siddiqui

Curtin University

Dora Marinova

Curtin University

Amzad Hossain

Curtin University

Date Written: June 15, 2016

Abstract

Inter-firm collaboration and networking have significantly increased in the context of technological innovation, changing the business environment and contributing to rapid and global integration. Being at the heart of technological innovation and commercialization, the venture capital (VC) industry has adopted inter-firm alliance as a common practice on a global scale. The most common form of collaboration in the industry is investment syndication between firms which eventually leads to a network of syndication. Understanding drivers of syndication and its financial implications is no longer enough. The nature of the inter-firm collaboration networks can be influenced by location and industry characteristics, and in turn they can also influence the industry practices and change. This study investigates the emerging structure of the VC networks in technology ventures in Australia in order to capture key features of the Australian VC market. Using graph theory the paper presents syndication network graphs and analyses their structural properties. The connectivity and density analysis shows further scope for facilitating the flow of information and resources across the VC industry. Behavioural implications of the networks on the industry practices and viability are also analysed and questions raised about the VC industry’s contribution to supporting and mainstreaming sustainable technologies.

Keywords: syndication network, inter-firm collaboration, industry culture, sustainability

JEL Classification: G24, L14, 056, M14

Suggested Citation

Siddiqui, Asif and Marinova, Dora and Hossain, Amzad, Venture Capital Networks in Australia: Emerging Structure and Behavioural Implications (June 15, 2016). Siddiqui, A.I., Marinova, D. & Hossain, A. (2016). Venture capital networks in Australia: emerging structure and behavioural implications. Journal of Management and Sustainability, Vol. 6, No. 2. , Available at SSRN: https://ssrn.com/abstract=2796019

Asif Siddiqui (Contact Author)

Curtin University ( email )

Kent Street
Bentley
Perth, WA WA 6102
Australia

Dora Marinova

Curtin University ( email )

Kent Street
Bentley
Perth, WA WA 6102
Australia

Amzad Hossain

Curtin University ( email )

Kent Street
Bentley
Perth, WA WA 6102
Australia

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