Connected VCs and strategic alliances: Evidence from biotech companies

We study a new channel through which portfolio companies benefit from ties among venture capitalists (VCs). By tracing individual VCs' investment and syndication histories, we show that improve companies' access to strategic alliance partners. While existing studies demonstrate alliances are more frequent sharing the same VC, provide evidence also indirectly connected VC networks. In addition, our results suggest mitigate asymmetric information problems arise when formed. Finally, between portfolios tend perform well. this type of is associated with higher IPO chances. address alternative explanations related endogeneity concerns.