How Does Privacy Regulation Affect Transatlantic Venture Investment? Evidence from GDPR

Jian Jia, Ginger Zhe Jin, Mario Leccese and Liad Wagman

No 33909, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We examine how the GDPR affected transatlantic venture investment. Using investment data from 2014 to 2019, we find that the GDPR’s rollout in May 2018 led to a significant decline in US investor activity in the EU, evidenced by fewer deals and investment, especially for newer and data-related ventures. Investors shifted toward geographically closer ventures and relied more on syndication, particularly with EU-based lead investors. While the shift to local investing drove the overall decline, syndication partially offset it. The results highlight the role of digital policies in shaping investment strategies and influencing transatlantic capital flows.

JEL-codes: D8 G11 K20 (search for similar items in EconPapers)
Date: 2025-06
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