Eur. Phys. J. B (2015) 88: 260
https://doi.org/10.1140/epjb/e2015-60525-3

Regular Article

Applying temporal network analysis to the venture capital market^*

¹ College of Communication and Transport, Shanghai Maritime University, Shanghai 201306, P.R. China
² Complex Systems Group, Institute of High Performance Computing, Agency for Science Technology and Research, 138632 Singapore, Singapore
³ Center for Polymer Studies and Department of Physics, Boston University, Boston, MA 02215, USA

^a e-mail: fengl@ihpc.a-star.edu.sg

Received: 30 June 2015
Received in final form: 26 August 2015
Published online: 14 October 2015

Abstract

Using complex network theory to study the investment relationships of venture capital firms has produced a number of significant results. However, previous studies have often neglected the temporal properties of those relationships, which in real-world scenarios play a pivotal role. Here we examine the time-evolving dynamics of venture capital investment in China by constructing temporal networks to represent (i) investment relationships between venture capital firms and portfolio companies and (ii) the syndication ties between venture capital investors. The evolution of the networks exhibits rich variations in centrality, connectivity and local topology. We demonstrate that a temporal network approach provides a dynamic and comprehensive analysis of real-world networks.