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

Andrea Bellucci, Alexander Borisov, Gianluca Gucciardi and Alberto Zazzaro ()

Journal of Banking & Finance, 2023, vol. 147, issue C

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: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0378426622000437
Full text for ScienceDirect subscribers only

Related works:
Working Paper: The Reallocation Effects of COVID-19: Evidence from Venture Capital Investments around the World (2022)
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)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jbfina:v:147:y:2023:i:c:s0378426622000437

DOI: 10.1016/j.jbankfin.2022.106443

Access Statistics for this article

Journal of Banking & Finance is currently edited by Ike Mathur

More articles in Journal of Banking & Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().