Peer networks in venture capital

I identify advantages from strategic networks in venture capital investments, estimating large impacts. I use the experiment underlying the formation of HBS MBA VCs and entrepreneurs. Random assignment of HBS MBA graduates provides a key exogenous variation. Being connected to peer VC firms and startups leads to more deals and larger AUM. An endowment of one-additional entrepreneur leads to raising $23.47 M more, and one-additional VC leads to raising $10.48 M more than the average size of HBS funds. Results suggest that the well-connected venture capitalist may be successful by attaining access to great deals.