  This paper studies the extent to which social capital drives performance in
the Chinese venture capital market and explores the trend toward VC syndication
in China. First, we propose a hybrid model based on syndicated social networks
and the latent-variable model, which describes the social capital at venture
capital firms and builds relationships between social capital and performance
at VC firms. Then, we build three hypotheses about the relationships and test
the hypotheses using our proposed model. Some numerical simulations are given
to support the test results. Finally, we show that the correlations between
social capital and financial performance at venture capital firms are weak in
China and find that China's venture capital firms lack mature social capital
links.
