Bellavitis C, Fisch C, McNaughton RB. COVID-19 and the global venture capital landscape.
SMALL BUSINESS ECONOMICS 2021;
59:781-805. [PMID:
38624971 PMCID:
PMC8417668 DOI:
10.1007/s11187-021-00547-9]
[Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [Abstract] [Key Words] [Track Full Text] [Subscribe] [Scholar Register] [Accepted: 07/22/2021] [Indexed: 05/11/2023]
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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