The reallocation effects of COVID-19: Evidence from venture capital investments around the world

Andrea Bellucci; Alexander Borisov; Gianluca Gucciardi; Alberto Zazzaro

doi:10.1016/j.jbankfin.2022.106443

The reallocation effects of COVID-19: Evidence from venture capital investments around the world

Andrea Bellucci
, Alexander Borisov
, Gianluca Gucciardi
, Alberto Zazzaro

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

Abstract

We examine possible reallocation effects generated by the COVID-19 outbreak by analyzing the patterns of venture capital (VC) investments around the globe. Using transaction-level data and exploiting the staggered nature of the spread of the virus, we document a shift in VC portfolios towards firms developing technologies relevant to an environment of social distancing and health pandemic concerns. A difference-in-differences analysis estimates significant increases in invested amount and number of deals in such areas. We show heterogenous effects related to the experience of VC investors, as well as their size and organizational form.

Original language	English
Article number	106443
Journal	Journal of Banking and Finance
Volume	147
DOIs	https://doi.org/10.1016/j.jbankfin.2022.106443
Publication status	Published - Feb 2023
Externally published	Yes

Keywords

COVID-19
Healthcare
Investment
Pandemic
Venture capital

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10.1016/j.jbankfin.2022.106443

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title = "The reallocation effects of COVID-19: Evidence from venture capital investments around the world",

abstract = "We examine possible reallocation effects generated by the COVID-19 outbreak by analyzing the patterns of venture capital (VC) investments around the globe. Using transaction-level data and exploiting the staggered nature of the spread of the virus, we document a shift in VC portfolios towards firms developing technologies relevant to an environment of social distancing and health pandemic concerns. A difference-in-differences analysis estimates significant increases in invested amount and number of deals in such areas. We show heterogenous effects related to the experience of VC investors, as well as their size and organizational form.",

keywords = "COVID-19, Healthcare, Investment, Pandemic, Venture capital",

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AU - Bellucci, Andrea

AU - Borisov, Alexander

AU - Gucciardi, Gianluca

AU - Zazzaro, Alberto

PY - 2023/2

Y1 - 2023/2

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AB - We examine possible reallocation effects generated by the COVID-19 outbreak by analyzing the patterns of venture capital (VC) investments around the globe. Using transaction-level data and exploiting the staggered nature of the spread of the virus, we document a shift in VC portfolios towards firms developing technologies relevant to an environment of social distancing and health pandemic concerns. A difference-in-differences analysis estimates significant increases in invested amount and number of deals in such areas. We show heterogenous effects related to the experience of VC investors, as well as their size and organizational form.

KW - COVID-19

KW - Healthcare

KW - Investment

KW - Pandemic

KW - Venture capital

UR - https://www.scopus.com/pages/publications/85126792120

U2 - 10.1016/j.jbankfin.2022.106443

DO - 10.1016/j.jbankfin.2022.106443

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JO - Journal of Banking and Finance

JF - Journal of Banking and Finance

M1 - 106443

ER -

The reallocation effects of COVID-19: Evidence from venture capital investments around the world

Abstract

Keywords

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