This article explores how interfirm networks in the U.S. venture capital (VC) market affect spatial patterns of exchange. It argues that information about potential investment opportunities generally circulates within geographic and industry spaces, leading to the localization of VC investments. The study finds that social networks in the VC community, built through syndicated investing, diffuse information across 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 article also examines the role of geographic and social distance in economic exchange, suggesting that both factors influence the likelihood of interaction. The findings contribute to the literature on economic sociology by providing a sociological explanation for the spatial organization of economic activity and have implications for regional economic development policies. The empirical analysis uses data from 1986 to 1998, focusing on the factors that influence the spatial reach of VC investments, including VC age, experience, target company stage, and the centrality of the venture capitalist's position in the industry's coinvestment network.This article explores how interfirm networks in the U.S. venture capital (VC) market affect spatial patterns of exchange. It argues that information about potential investment opportunities generally circulates within geographic and industry spaces, leading to the localization of VC investments. The study finds that social networks in the VC community, built through syndicated investing, diffuse information across 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 article also examines the role of geographic and social distance in economic exchange, suggesting that both factors influence the likelihood of interaction. The findings contribute to the literature on economic sociology by providing a sociological explanation for the spatial organization of economic activity and have implications for regional economic development policies. The empirical analysis uses data from 1986 to 1998, focusing on the factors that influence the spatial reach of VC investments, including VC age, experience, target company stage, and the centrality of the venture capitalist's position in the industry's coinvestment network.