This study examines two types of venture capital networks — those among angels and those among venture capital firms (VCFs) — to determine if they could contribute to the fragmentation of the market for venture capital. If it were not fragmented, entrepreneurs would have very limited opportunities to present their deals to more than one source for funding. This study found evidence to support some market fragmentation, which was based on the reliability of the informants utilized by each network. Market fragmentation creates opportunities for entrepreneurs to tap at least two separate sources of funding.
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