The paper examines the impact of venture capital (VC) networks on investment performance, using a comprehensive sample of U.S. VCs from 1980 to 2003. It finds that VC firms with more influential network positions, as measured by centrality in syndication networks, have significantly better performance, as measured by the proportion of portfolio companies that are successfully exited via IPOs or sales. These effects are robust to various specifications and are not explained by the experience of the VC firm. The study also finds that better networked VC firms are more likely to have portfolio companies that survive to subsequent rounds of financing and eventually exit. The economic magnitude of these effects is substantial, with a one-standard-deviation increase in network centrality associated with a two percentage point increase in exit rates. The paper also explores the evolution of VC networks and finds that better networked VCs are not simply older or more experienced, but have distinct advantages in accessing information, deal flow, and capital. The study concludes that networking is a crucial factor in the performance of VC firms, and that the structure of VC networks has important implications for the industry. The paper provides a detailed analysis of network measures, including degree, closeness, and betweenness centrality, and shows how these measures can be used to assess the influence of VC firms in the market. The study also highlights the importance of considering network effects when evaluating the performance of VC funds and portfolio companies.The paper examines the impact of venture capital (VC) networks on investment performance, using a comprehensive sample of U.S. VCs from 1980 to 2003. It finds that VC firms with more influential network positions, as measured by centrality in syndication networks, have significantly better performance, as measured by the proportion of portfolio companies that are successfully exited via IPOs or sales. These effects are robust to various specifications and are not explained by the experience of the VC firm. The study also finds that better networked VC firms are more likely to have portfolio companies that survive to subsequent rounds of financing and eventually exit. The economic magnitude of these effects is substantial, with a one-standard-deviation increase in network centrality associated with a two percentage point increase in exit rates. The paper also explores the evolution of VC networks and finds that better networked VCs are not simply older or more experienced, but have distinct advantages in accessing information, deal flow, and capital. The study concludes that networking is a crucial factor in the performance of VC firms, and that the structure of VC networks has important implications for the industry. The paper provides a detailed analysis of network measures, including degree, closeness, and betweenness centrality, and shows how these measures can be used to assess the influence of VC firms in the market. The study also highlights the importance of considering network effects when evaluating the performance of VC funds and portfolio companies.