We empirically explore the importance of networks in the match formation of startups and investors. Using a massive network of connections from the entrepreneurial finance setting in California, we estimate a matching model introducing network distance as a key determinant of the value of a...

This paper distinguishes entrepreneurial network effects from the firm effects and industry effects that have been the focus of much of the literature about the economics of technological change and the economics of industrial organization. A method of identifying entrepreneurial networks is...

We study a model of network formation and start-up financing with endogenous entrepreneurial type distribution. A hub firm admits members to its network based on signals about entrepreneurs' types. Network membership is observable, which allows lenders to offer different interest rates to...