Does syndicating bring syndicating ?An exploration targeting ECF based on social structure by complex network analysis

This paper deploys an abductive reasoning process to explore the ECF investors’ co-investing preference based on previous online ties, drawing on 7417 investment records for 1355 investors. Based on the BGLL algorithm and Dunbar-Law, we trace the formation of co-investing relationships based on dynamic changes of sub-network. The results show how co-investing preferences of investors arise from the dependency they developed through cooperative behaviors over time. By relating two co-investing preferences to two kinds of community structures, the findings suggest that heterogeneous connections in a hierarchical structure are more stable and sustainable than homogeneous connections not based on strong ties within a decentralized structure. This work presents a dynamic network perspective in examining the relationship between the previous co-investing and following co-investing, enriches the research on the historical dependence in social behavior, and adds new knowledge to ECF investors’ co-investing preference and ECF practice.