The Short-Run Effects of the General Data Protection Regulation on Technology Venture Investment

Jian Jia (), Ginger Zhe Jin () and Liad Wagman
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Jian Jia: Stuart School of Business, Illinois Institute of Technology, Chicago, Illinois 60661
Ginger Zhe Jin: Department of Economics, University of Maryland, College Park, Maryland 20742; National Bureau of Economic Research, Cambridge, Massachusetts 02138

Marketing Science, 2021, vol. 40, issue 4, 661-684

Abstract: The General Data Protection Regulation (GDPR) was enacted in the European Union in April 2016 and went into effect in May 2018. We study its impact on investment in new and emerging technology firms. Our findings indicate negative post-GDPR effects after its 2018 rollout on European ventures relative to their counterparts in the United States and the rest of the world, and considerably lesser effects after its 2016 enactment and before implementation. The negative effects manifest in the number of and amounts raised in financing deals, and are particularly pronounced for newer, data-related, and business-to-consumer ventures.

Keywords: data; regulation; GDPR; investment; venture financing (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:inm:ormksc:v:40:y:2021:i:4:p:661-684

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