The Network Position of AI Venture Companies in Investment Network: Social Capital Matters

In the startup landscape, social capital is a vital component within the innovation ecosystem. Startups accumulate social capital through investor networks to enhance their return on investment. However, the optimal network formation for maximizing social capital in startups remains unclear. Two opposing theories on network structure emerge: Coleman and Bourdieu view social capital as a communal resource within the social structure, advocating for the maintenance of existing relationships in a closed network. In contrast, Burt emphasizes individual entrepreneurship, urging entrepreneurs to exploit ‘structural holes' and navigate around constrained relationships to optimize social capital. We hypothesize that startups with greater structural holes exhibit a higher positive correlation with revenue performance. Our study indicates that social capital significantly influences ventures' sales performance, with the highest impact achieved through non-redundant bridging contacts rather than secure, closed contacts. This research illuminates the dynamic interplay between social capital and network structures in startups, providing insights for strategic optimization in the pursuit of enhanced performance and growth.