Venture capital and the financial crisis: an empirical study across industries and countries

Joern H. Block (), Philipp Sandner and Geertjan De Vries

MPRA Paper from University Library of Munich, Germany

Abstract: This study analyzes the effect of the 2008 financial crisis on the venture capital market. We show that the crisis is associated with a decrease in the number of initial funding rounds as well as with a decrease in the amount of funds raised in later funding rounds. The effects of the crisis differed across industries and were stronger in the US than in other countries. We suggest that the crisis has led to a severe ‘funding gap’ in the financing of technological development and innovation

Keywords: Venture capital; financial crisis; innovation finance; entrepreneurial finance; recession (search for similar items in EconPapers)
JEL-codes: M13 G24 O3 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ent, nep-ino and nep-sbm
Date: 2010-01-27
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Persistent link: http://EconPapers.repec.org/RePEc:pra:mprapa:20287

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