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

Author

Listed:
  • Jian Jia
  • Ginger Zhe Jin
  • Mario Leccese
  • Liad Wagman

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.

Suggested Citation

  • Jian Jia & Ginger Zhe Jin & Mario Leccese & Liad Wagman, 2025. "How Does Privacy Regulation Affect Transatlantic Venture Investment? Evidence from GDPR," NBER Working Papers 33909, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:33909
    Note: CF IFM IO ITI LE
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    More about this item

    JEL classification:

    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • K20 - Law and Economics - - Regulation and Business Law - - - General

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