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

Andrea Bellucci (), Alexander Borisov (), Gianluca Gucciardi and Alberto Zazzaro ()
Additional contact information
Andrea Bellucci: Università degli Studi dell’Insubria, European Commission, Joint Research Centre (JRC), and MoFiR
Alexander Borisov: Lindner College of Business, University of Cincinnati and MoFiR

CSEF Working Papers from Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy

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: Venture Capital; Investment; COVID-19; Healthcare; Pandemic. (search for similar items in EconPapers)
JEL-codes: D81 E22 E44 F21 G24 (search for similar items in EconPapers)
Date: 2022-02-16
New Economics Papers: this item is included in nep-cfn, nep-ent and nep-mac
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Citations: View citations in EconPapers (11)

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Related works:
Journal Article: The reallocation effects of COVID-19: Evidence from venture capital investments around the world (2023)
Working Paper: The Reallocation Effects of COVID-19: Evidence from Venture Capital Investments around the World (2021)
Working Paper: The Reallocation Effects of COVID-19: Evidence from Venture Capital Investments around the World (2020)
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