Second, the syndicate’s ability to interpret diverse information meaningfully cannot be taken for granted. There may be interpretive barriers to understand- ing the information and assessing its value (Bruner, Goodnow, and Austin, 1956; Simon and Feigenbaum, 1964; Dougherty, 1992), which may limit inves- tors’ ability to integrate information from various sources to generate new insights (Simon, 1966; Mors, 2010; Wadhwa, Phelps, and Kotha, 2016). The quality of the advice provided to portfolio ventures will depend on investors’ ability to interpret the information obtained and to assess how it could be applied to the venture’s specific setting, which may in turn depend on whether the investors’ social capital comes from open versus closed networks, and specialized versus diverse networks.
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