Modeling Risk Contagion in the Venture Capital Market: A Multilayer Network Approach

Figure 3

Market robustness as the function of transmitting shock level considering that the initial failure occurs in the VC layer (a) and in the start-up layer (b). The black curve represents the scenario only considering risk contagion via external links while the red line represents the risk propagation with internal and external link coupling effect. In each layer we use and internal structure topology corresponds to a random ER network with . The weight follows a uniform distribution in . The results were averaged over 100 realizations. In the insets we show 100 individual realizations (gray) and the average curve (red).

(a)

(b)