COVID-19 and the global venture capital landscape

Cristiano Bellavitis; Christian Fisch; Rod B. McNaughton

doi:10.1007/s11187-021-00547-9

COVID-19 and the global venture capital landscape

Cristiano Bellavitis^*
, Christian Fisch
, Rod B. McNaughton

^*Corresponding author for this work

Applied Economics

Research output: Contribution to journal › Article › Academic › peer-review

29 Citations (Scopus)

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Abstract

We assess the effect of the COVID-19 pandemic on venture capital (VC) investments, documenting a significant decline in investments using a dataset of 39,527 funding rounds occurring before and during the pandemic in 130 countries. In line with our theoretical considerations, we show that this decline is more pronounced for investments characterized by higher uncertainty, namely investments in seed-stage ventures, industries affected more heavily by the COVID-19 crisis, international investments, and non-syndicated investments. Investor prominence partially moderates these effects.

Original language	English
Number of pages	25
Journal	Small Business Economics
DOIs	https://doi.org/10.1007/s11187-021-00547-9
Publication status	Published - 4 Sept 2021

Bibliographical note

JEL Classifications F21 . G24 . G41 . L26 . M13

Publisher Copyright:
© 2021, The Author(s), under exclusive licence to Springer Science+Business Media, LLC, part of Springer Nature.

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abstract = "We assess the effect of the COVID-19 pandemic on venture capital (VC) investments, documenting a significant decline in investments using a dataset of 39,527 funding rounds occurring before and during the pandemic in 130 countries. In line with our theoretical considerations, we show that this decline is more pronounced for investments characterized by higher uncertainty, namely investments in seed-stage ventures, industries affected more heavily by the COVID-19 crisis, international investments, and non-syndicated investments. Investor prominence partially moderates these effects.",

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COVID-19 and the global venture capital landscape

Abstract

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