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

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  • Block, Joern
  • Sandner, Philipp
  • De Vries, Geertjan

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

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 20287.

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Date of creation: 27 Jan 2010
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Handle: RePEc:pra:mprapa:20287

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Keywords: Venture capital; financial crisis; innovation finance; entrepreneurial finance; recession;

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  27. Block, Joern & Sandner, Philipp, 2009. "What is the Effect of the Current Financial Crisis on Venture Capital Financing? Empirical Evidence from US Internet Start-ups," MPRA Paper 14727, University Library of Munich, Germany.
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