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

Risultato della ricerca: Contributo su rivista › Articolo in rivista › 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.

Lingua originale	Inglese
Numero di articolo	106443
Rivista	Journal of Banking and Finance
Volume	147
DOI	https://doi.org/10.1016/j.jbankfin.2022.106443
Stato di pubblicazione	Pubblicato - feb 2023
Pubblicato esternamente	Sì

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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",

author = "Andrea Bellucci and Alexander Borisov and Gianluca Gucciardi and Alberto Zazzaro",

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PY - 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

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M1 - 106443

ER -

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

Abstract

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