Venture Capitalists and COVID-19

Paul Gompers, Will Gornall, Steven N. Kaplan and Ilya Strebulaev

No 27824, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We survey over 1,000 institutional and corporate venture capitalists (VCs) at more than 900 different firms to learn how their decisions and investments have been affected by the COVID-19 pandemic. We compare their survey answers to those provided by a large sample of VCs in early 2016 and analyzed in Gompers, Gornall, Kaplan, and Strebulaev (2020). VCs have slowed their investment pace (71% of normal) and expect to invest at 81% of their normal pace over the coming year. Not surprisingly, they have devoted more time to guiding the portfolio companies through the pandemic. VCs report that 52% of their portfolio companies are positively affected or unaffected by the pandemic; 38% are negatively affected; and 10% are severely negatively affected. Overall, they expect the pandemic to have a small negative effect on their fund IRRs (-1.6%) and MOICs (-0.07). Surprisingly, we find little change in the allocation of their time to helping portfolio companies relative to looking for new investments. In general, we find only modest differences between institutional and corporate VCs.

JEL-codes: G24 G30 G31 L26 (search for similar items in EconPapers)
Date: 2020-09
New Economics Papers: this item is included in nep-fmk
Note: CF PR
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Citations: View citations in EconPapers (6)

Published as Paul Gompers & Will Gornall & Steven N. Kaplan & Ilya A. Strebulaev, 2021. "Venture Capitalists and COVID-19," Journal of Financial and Quantitative Analysis, vol 56(7), pages 2474-2499.

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Related works:
Journal Article: Venture Capitalists and COVID-19 (2021)
Working Paper: Venture Capitalists and COVID-19 (2020)
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