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Given the argued importance of networks to new ventures, this paper is intended to fill a noted gap in the literature pertaining to the factors that influence the evolution of new ventures' alliance networks. Drawing on the imprinting literature, we propose that one has to look beyond the first partner per se, and instead focus on the extant relationships the initial partner has with other firms. More specifically, we argue and find that the network size and centrality of a new venture's initial alliance partner influence the subsequent size of the new venture's network.

This study examines the syndication of investments novel to a VC firm as a function of the firm's need and opportunity to do so. We distinguish two types of uncertainty that firms face when considering novel investments: egocentric, pertaining to making the right decisions, and altercentric, pertaining to being evaluated as a potential partner on the investment. Whereas the former increases the firm's need to syndicate the investment, the latter reduces the firm's opportunity to do so, making it contingent upon the firm's status and reputation for attracting potential partners. Using data on first-round venture capital investments, we find that novel investments are more likely to be syndicated. Moreover, this relationship is stronger for firms with higher status and weaker for firms with higher reputation. These results highlight a relational aspect of uncertainty, inherent in a particular VC firm -investment dyad, and suggest that status and reputation play different roles in aligning the need and opportunity to syndicate novel investments. Executive summaryFor firms to form alliances, it is necessary for them to have both the need and opportunity to do so. This is equally valid in the context of venture capital syndications and we focus on how the need and opportunity for syndication align in the context of specific investments. While prior research has focused on the uncertainty characterizing a specific investment target (e.g. early stage or high technology) as a driver for syndication, we argue that such uncertainty need not be perceived uniformly among potential investors. Certain investments may be more or less uncertain to different VC firms, based on the extent of their prior experience in the specific industry of the investment. We thus focus on a hitherto unexplored, relational aspect of uncertainty, inherent in a particular VC firm -investment dyad and reflecting the VC firm's understanding of the particular company and its environment.In view of this, the need and opportunity to syndicate a particular investment may not always be aligned: in certain situationssuch as when the investment is novel to the VC firm -the factors that increase the firm's need to seek partners may also reduce the opportunity for the firm to find and attract needed partners. Such misalignment is related to the presence of two different types of uncertainty. On one hand, a VC firm faces (egocentric) uncertainty related to the proper decisions to be made in selecting and managing these investments. In such cases, the firm can benefit from the participation of syndicate partners and is thus likely to seek such partners. Yet, on the other hand, for these very same investments, it is difficult for potential syndicate partners to

The current view of network emergence is predominantly influenced by path‐dependent mechanisms where immediately preceding network structures inform current network positions. However, less explored is the ongoing sensitivity of future network positions to the composition and structure of newcomers' first partnerships. Building on the social categorization literature, we develop a model of the ongoing direct and moderating effects of newcomers' first network partnership on their status. We test our model using a panel of 272 U.S. venture capital firms from the 1980 to 2004 period and show that the reputation of newcomers' first partners exerts a positive influence on their future status (over and above intermediate network conditions). We find that this positive influence is stronger for those newcomers whose first partners formed a cohesive network. Copyright © 2013 John Wiley & Sons, Ltd.

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