College
Strome College of Business
Department
Management
Program
Business Administration
Publication Date
4-2021
DOI
10.25883/r2qy-7f42
Abstract
We will explore how large-scale exogenous crises impact venture capital firms’ investment scope decisions during and after a crisis. We will analyze a population of 11,564 funding rounds announced between 2005Q1 until 2012Q4 in the US. Analysis shows that the 2008 Financial Crisis caused a short-term change in the geographical areas where VCs invest, and after the crisis firms tend to look further afield to locate viable investment targets. This study will contribute to entrepreneurial finance research by offering theoretical and empirical insights on how major crises affect venture capital investment and entrepreneurial activities.
Keywords
Venture capital, Start-up, Shock, Crisis, Entrepreneur, Geographic location
Disciplines
Business Administration, Management, and Operations | Corporate Finance | Entrepreneurial and Small Business Operations
Files
Download Full Text (273 KB)
Recommended Citation
Wilson, Samuel; Willis, Christopher; and Zhang, Jing, "Will VCs Invest at a Distance During and After a Crisis? Evidence from the 2008 Financial Crisis" (2021). College of Business (Strome) Posters. 10.
https://digitalcommons.odu.edu/gradposters2021_business/10
Included in
Business Administration, Management, and Operations Commons, Corporate Finance Commons, Entrepreneurial and Small Business Operations Commons