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

School of Business

Trier University
Erasmus University Rotterdam
The University of Auckland

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

34 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
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

Keywords

COVID-19
Crisis
Pandemic
Uncertainty
Venture capital

Access to Document

10.1007/s11187-021-00547-9

Cite this

@article{3d4c47ff825044f8b5fde5a19ee1c29c,

title = "COVID-19 and the global venture capital landscape",

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",

author = "Cristiano Bellavitis and Christian Fisch and McNaughton, \{Rod B.\}",

note = "Publisher Copyright: {\textcopyright} 2021, The Author(s), under exclusive licence to Springer Science+Business Media, LLC, part of Springer Nature.",

year = "2022",

month = oct,

doi = "10.1007/s11187-021-00547-9",

language = "English",

volume = "59",

pages = "781--805",

number = "3",

}

TY - JOUR

T1 - COVID-19 and the global venture capital landscape

AU - Bellavitis, Cristiano

AU - Fisch, Christian

AU - McNaughton, Rod B.

PY - 2022/10

Y1 - 2022/10

N2 - 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.

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.

KW - COVID-19

KW - Crisis

KW - Pandemic

KW - Uncertainty

KW - Venture capital

UR - https://www.scopus.com/pages/publications/85114143145

UR - https://www.scopus.com/pages/publications/85114143145#tab=citedBy

U2 - 10.1007/s11187-021-00547-9

DO - 10.1007/s11187-021-00547-9

M3 - Article

AN - SCOPUS:85114143145

SN - 0921-898X

VL - 59

SP - 781

EP - 805

JO - Small Business Economics

JF - Small Business Economics

IS - 3

ER -

COVID-19 and the global venture capital landscape

Abstract

Keywords

Access to Document

Other files and links

Fingerprint

Cite this