This paper examines the impact of venture capital (VC) networks on investment performance, focusing on the co-investment networks formed when VCs syndicate portfolio company investments. Using a comprehensive sample of U.S. VCs from 1980 to 2003, the authors find that VC funds with more influential network positions have significantly better performance, measured by the proportion of portfolio company investments that are successfully exited through an initial public offering (IPO) or a sale to another company. Similarly, portfolio companies of better networked VC firms are more likely to survive subsequent rounds of financing and eventually exit. The magnitude of these effects is economically significant and robust across various specifications. When controlling for network effects, the importance of investment experience as a determinant of VC fund performance is reduced and sometimes eliminated. The study also provides initial evidence on the evolution of VC networks and discusses the implications for institutional investors and the VC market.This paper examines the impact of venture capital (VC) networks on investment performance, focusing on the co-investment networks formed when VCs syndicate portfolio company investments. Using a comprehensive sample of U.S. VCs from 1980 to 2003, the authors find that VC funds with more influential network positions have significantly better performance, measured by the proportion of portfolio company investments that are successfully exited through an initial public offering (IPO) or a sale to another company. Similarly, portfolio companies of better networked VC firms are more likely to survive subsequent rounds of financing and eventually exit. The magnitude of these effects is economically significant and robust across various specifications. When controlling for network effects, the importance of investment experience as a determinant of VC fund performance is reduced and sometimes eliminated. The study also provides initial evidence on the evolution of VC networks and discusses the implications for institutional investors and the VC market.