The article explores how interfirm networks in the U.S. venture capital (VC) market influence the spatial distribution of VC investments. It argues that information about investment opportunities circulates within geographic and industry spaces, leading to the geographic and industry localization of VC investments. Empirical analyses show that the social networks in the VC community, built through syndicated investing, facilitate the diffusion of information across spatial boundaries, expanding the spatial radius of exchange. Venture capitalists with axial positions in the industry's coinvestment network invest more frequently in spatially distant companies. The study examines the role of geography and social topography in structuring economic exchange. It finds that the probability of a relationship increases when two individuals live near one another, and that the likelihood of forming a social relationship declines with distance. These findings suggest that both physical and social proximity influence the probability of random interaction. The study also finds that the structure of relationships in the VC community influences the movement of capital, as investors must be aware of investment opportunities before they can capitalize on them. The study analyzes the pattern of exchange in the VC market and finds that venture capitalists exhibit highly localized investment patterns in both physical and industry space. It argues that the structure of social and professional relations in the VC community offers an alternative explanation for the spatial concentration of industry. The study also finds that the spatial clustering of social and professional relations can affect the macroeconomic health of regions and nations. The study also examines the determinants of the spatial reach of VC investments. It finds that VC firms with more experience and tenure are more likely to invest in distant targets. The study also finds that the position of VC firms in the industry's evolving coinvestment network affects the proclivity to invest in spatially distant targets. The study uses an empirical strategy to analyze the determinants of financing relations between venture capitalists and startup companies. It finds that the probability of a particular VC firm investing in a given target company is influenced by a variety of factors, including geographic distance, the stage of the target company, and the position of the VC firm in the industry's coinvestment network. The study concludes that the social structure of the market determines the ability of participants to overcome the informational constraints that would otherwise restrict market exchange.The article explores how interfirm networks in the U.S. venture capital (VC) market influence the spatial distribution of VC investments. It argues that information about investment opportunities circulates within geographic and industry spaces, leading to the geographic and industry localization of VC investments. Empirical analyses show that the social networks in the VC community, built through syndicated investing, facilitate the diffusion of information across spatial boundaries, expanding the spatial radius of exchange. Venture capitalists with axial positions in the industry's coinvestment network invest more frequently in spatially distant companies. The study examines the role of geography and social topography in structuring economic exchange. It finds that the probability of a relationship increases when two individuals live near one another, and that the likelihood of forming a social relationship declines with distance. These findings suggest that both physical and social proximity influence the probability of random interaction. The study also finds that the structure of relationships in the VC community influences the movement of capital, as investors must be aware of investment opportunities before they can capitalize on them. The study analyzes the pattern of exchange in the VC market and finds that venture capitalists exhibit highly localized investment patterns in both physical and industry space. It argues that the structure of social and professional relations in the VC community offers an alternative explanation for the spatial concentration of industry. The study also finds that the spatial clustering of social and professional relations can affect the macroeconomic health of regions and nations. The study also examines the determinants of the spatial reach of VC investments. It finds that VC firms with more experience and tenure are more likely to invest in distant targets. The study also finds that the position of VC firms in the industry's evolving coinvestment network affects the proclivity to invest in spatially distant targets. The study uses an empirical strategy to analyze the determinants of financing relations between venture capitalists and startup companies. It finds that the probability of a particular VC firm investing in a given target company is influenced by a variety of factors, including geographic distance, the stage of the target company, and the position of the VC firm in the industry's coinvestment network. The study concludes that the social structure of the market determines the ability of participants to overcome the informational constraints that would otherwise restrict market exchange.