henry copeland: Investor homophily decreases a start-up's odds of success. pllqt.it/iIdvze
In Venture Capital, Birds of a Feather Lose Money Together (Success Defined as IPO)They found that the probability of success decreased by 17 percent if two co-investors had previously worked at the same company—even if they hadn't worked there at the same time. In cases where investors had attended the same undergraduate school, the success rate dropped by 19 percent. And, overall, investors who were members of the same ethnic minority were 20 percent less successful than investors with different ethnic backgrounds.