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

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

16 Scopus citations

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 (US)
Pages (from-to)	781-805
Number of pages	25
Journal	Small Business Economics
Volume	59
Issue number	3
DOIs	https://doi.org/10.1007/s11187-021-00547-9
State	Published - Oct 2022
Externally published	Yes

Keywords

COVID-19
Crisis
Pandemic
Uncertainty
Venture capital

ASJC Scopus subject areas

General Business, Management and Accounting
Economics and Econometrics

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10.1007/s11187-021-00547-9

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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.",

keywords = "COVID-19, Crisis, Pandemic, Uncertainty, Venture capital",

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AB - 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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KW - Crisis

KW - Pandemic

KW - Uncertainty

KW - Venture capital

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COVID-19 and the global venture capital landscape

Abstract

Keywords

ASJC Scopus subject areas

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