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By examining joint ventures and strategic alliances among venture capital portfolio firms, this paper examines whether venture capitalists facilitate collaborations within the portfolio.Using a large database of strategic alliances and financing information from Venture Economics,I find evidence of a keiretsu effect,an increase in the probability that a portfolio firm will form an alliance with a partner who shares a common venture capitalist.Because of shortcomings in traditional discrete choice models for this application,I develop a probability model based on sequential sampling that accounts for the interdependence of strategic alliances.