The reallocation effects of COVID-19: Evidence from Venture Capital investments around The World
We examine the possible reallocation effects on venture capital (VC) investment due to the spread of COVID-19 around the globe. Exploiting the staggered nature of the pandemic, and transaction level data aggregated at country and sector level, we empirically document a shift of venture capital towards pandemic-related deals. A difference-in-differences analysis estimates significant increases in invested amounts, number of deals, and proportion of funded deals in such categories. We highlight heterogeneous effects related to the experience of VC investors, their organizational form, and country of origin. Our results underscore the link between the spread of the pandemic
and the functioning of the VC market around the world.
Bellucci, A., Borisov, A., Gucciardi, G. and Zazzaro, A., The reallocation effects of COVID-19: Evidence from Venture Capital investments around The World, EUR 30494 EN, Publications Office of the European Union, Luxembourg, 2020, ISBN 978-92-76-27082-9, doi:10.2760/985244, JRC122165.
2020-12-04
Publications Office of the European Union
JRC122165
978-92-76-27082-9 (online)
1831-9424 (online)
EUR 30494 EN , OP KJ-NA-30494-EN-N (online)
| Language |
Citation |
| ENG | Bellucci, A., Borisov, A., Gucciardi, G. and Zazzaro, A., The reallocation effects of COVID-19: Evidence from Venture Capital investments around The World, EUR 30494 EN, Publications Office of the European Union, Luxembourg, 2020, ISBN 978-92-76-27082-9, doi:10.2760/985244, JRC122165. |
technical_report_vc_pandemic_vf.pdf
(1.18 MB - PDF)
