The Reallocation Effects of COVID-19: Evidence from Venture Capital Investments around the World.

Bellucci, Andrea; Borisov, Alexander; Gucciardi, Gianluca; Zazzaro, Alberto

Bellucci, Andrea; Borisov, Alexander; Gucciardi, Gianluca; Zazzaro, Alberto.

Bellucci A; Department of Economics, Università degli Studi dell'Insubria, European Commission, Joint Research Centre (JRC), and MoFiR. Address: Via Monte Generoso 71, 21100 Varese (VA), Italy.
Borisov A; Lindner College of Business, University of Cincinnati and MoFiR. Address: 2906 Woodside Drive, Cincinnati, OH 45221.
Gucciardi G; European Commission, Joint Research Centre (JRC). Address: Via E. Fermi, 2749, 21027 Ispra VA, Italy.
Zazzaro A; Department of Economics and Statistics, University of Naples Federico II, CSEF, and MoFiR. Address: Via Cintia, 21, 80126, Naples, Italy.

J Bank Financ ; : 106443, 2022 Feb 19.

Article in English | MEDLINE | ID: covidwho-2239095

ABSTRACT

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

Fulltext

XML

PubMed Links

Search on Google

Full text: Available Collection: International databases Database: MEDLINE Type of study: Experimental Studies Language: English Journal: J Bank Financ Year: 2022 Document Type: Article Affiliation country: J.jbankfin.2022.106443

Similar

MEDLINE

LILACS

LIS

Fulltext

XML

PubMed Links

Search on Google