Abstract:    The transformation of Chinese industrial structure has produced many emerging industries, then the venture capital can play a driving role. Based on the characteristics of network communities, this paper combines theoretical analysis and empirical test to make an in-depth analysis on the impact of network community structure change firm information dissemination resulting in community information dissemination changing.In this paper, China venture capital industry joint investment data of the CV (China Venture) source database was used to build a network community from January 1, 2006, to December 31, 2015. First, UCINET 6.560 was used to construct the VC network. Second, this paper uses the GN algorithm to extract the network community. This paper measures the network community with a three-year time window, for example in the 2006–2008 time windows we extract network community structure, and in the 2007-2009 time window investigate information dissemination, in the 2008-2010 time window calculate the performance, and so on. A total of 245 network communities were detected.First, basing on the structural analysis of cohesive subgroups, this paper proposes three dimensions (community cohesion, community status difference and community coordination) of the structure of venture capital network community. Two types of information dissemination (project information dissemination and experience information dissemination) are proposed according to the necessary information content for the existence and development of venture capital firms. Second, it is found that community cohesion has a negative effect on both types of information dissemination, while status difference and coordination have a positive effect on both types of information dissemination. The community cohesion has more significant influence on project information dissemination than community status difference, while community status difference has more significant influence on project information dissemination than community coordination′s. The influence of community cohesion and community status difference on the dissemination of empirical information is not significant, while the influence of community status difference on the dissemination of empirical information is more significant than that of coordination. Third, the cognitive proximity positively affects the relationship between community cohesion and two kinds of information dissemination. The cognitive proximity negatively affects the relationship between community status difference and the dissemination of two kinds of information, meanwhile negatively affects the relationship between the community coordination and the dissemination of two kinds of information. The practical significance of this paper found that the VC network community structure has a significant impact on the effect and effectiveness of information dissemination. Therefore, we could make full use of the community function to help establishing new firm or building relationships for firm that need to expand their investment areas, meanwhile acquire community membership identity. Further, a community structure will be built by establishing differentiated relationships based on the required information content, such as maintaining diversified contacts with other firms to ensure the credibility of information, actively establishing contact with well-known investment firms to acquire the latest experience and skills to promote their own development, and so on. Finally, the sustainable development of investment firm and even the Chinese VC industry are realized through the network community.

Key words: venture capital network community, information dissemination, cognitive proximity