What is the Effect of the Financial Crisis on Venture Capital Financing? Empirical Evidence from US Internet Start-Ups

Block, Joern; Sandner, Philipp

doi:10.2139/ssrn.1373723

Cited by 57 publications

(75 citation statements)

References 18 publications

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“…This decision contrasts with those of Block and Sandner (2009), who used the database CrunchBase as a novel dataset. 4 Compared to CrunchBase, VentureXpert goes further back in time and is thus the largest available database on private equity and VC investments.…”

Section: A Measures and Datamentioning

confidence: 89%

“…Using multivariate regressions, Block and Sandner (2009) have shown that controlling for factors such as the presence of an investment consortium, the age of the funded company, or the type of VC investor (business angel or VC fund) did not change the results substantially. between the effects of the crisis regarding the first and later funding rounds, a distinction which has been shown to make a great difference (Block and Sandner, 2009).…”

Section: The Effect Of the Crisis On Vc Activity Across Different mentioning

confidence: 99%

“…Except for Block and Sandner (2009), there is little empirical evidence regarding the impact of a financial crisis on VC activity. This study aims to shed more light on this issue.…”

Section: B the Questions Explored In This Studymentioning

confidence: 99%

“…between the effects of the crisis regarding the first and later funding rounds, a distinction which has been shown to make a great difference (Block and Sandner, 2009). In initial funding rounds, the funds raised provide initial money to start-ups.…”

Section: The Effect Of the Crisis On Vc Activity Across Different mentioning

confidence: 99%

“…This is one of the first studies to empirically document and analyze the effects of a financial crisis on VC activity (Block and Sandner, 2009). VC has become an element vital to the current economy and an important source of funding for innovative start-ups (Gompers, 1994;Jell, Block, and Henkel, 2009).…”

Section: B Further Researchmentioning

confidence: 99%

See 4 more Smart Citations

Venture Capital and the Financial Crisis: An Empirical Study across Industries and Countries

Block

Vries

Sandner

2012

The Oxford Handbook of Venture Capital

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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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Section: A Measures and Datamentioning

confidence: 89%

Section: The Effect Of the Crisis On Vc Activity Across Different mentioning

confidence: 99%

“…Except for Block and Sandner (2009), there is little empirical evidence regarding the impact of a financial crisis on VC activity. This study aims to shed more light on this issue.…”

Section: B the Questions Explored In This Studymentioning

confidence: 99%

Section: The Effect Of the Crisis On Vc Activity Across Different mentioning

confidence: 99%

Section: B Further Researchmentioning

confidence: 99%

See 3 more Smart Citations

Venture Capital and the Financial Crisis: An Empirical Study across Industries and Countries

Block

Vries

Sandner

2012

The Oxford Handbook of Venture Capital

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The sustainable start‐up paradox: Predicting the business and climate performance of start‐ups

2020

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Sustainable start‐ups introduce new sustainable technologies and business models that facilitate the transition to a carbon neutral economy. To understand how to create viable sustainable start‐ups, we study what factors predict their business performance and climate performance (i.e., the ability of the start‐up to reduce CO2 equivalent [CO2e] emissions) and if these contradict. A critical factor we consider is technology, which is commonly at the root of climate performance, and important for business performance because it influences a start‐up's competitive advantage. Using a sample of 197 sustainable start‐ups, we find a paradox between business and potential climate performance. Start‐ups that exploit hardware technologies have a lower business performance but a higher potential climate performance. Through the use of mediating effects, we show that the sustainable start‐up paradox is context specific. Start‐ups can partly escape this paradox by focusing on novel and hardware technologies. We discuss implications for theory and practice.

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Government expenditures and economic growth in the MENA region: A dynamic heterogeneous panel estimation

et al. 2020

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This study examines the dynamic heterogeneous effect of government expenditures on economic growth in 20 Middle East and North Africa (MENA) countries during the 1990-2016 period. The results reveal that a dynamic adjustment in economic growth in the MENA region occurred from the short to the long run. Arguably, government expenditures can promote economic growth. In the long run, the coefficients of government expenditures are positive and significant in oil and non-oil countries; in the short run, the coefficient is statistically significant in oil countries but not in non-oil countries. The coefficients of government expenditures markedly differ between the two groups. For the MENA region, as a whole, government expenditures exhibit a crowding-in effect instead of a crowding-out effect on growth. Importantly, to sustain economic growth, non-oil countries must embark fiscal reform measures promptly by optimizing government expenditures. Oil countries should consider the implications of short-and medium-term fiscal imbalances.

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What is the Effect of the Financial Crisis on Venture Capital Financing? Empirical Evidence from US Internet Start-Ups

Cited by 57 publications

References 18 publications

Venture Capital and the Financial Crisis: An Empirical Study across Industries and Countries

Venture Capital and the Financial Crisis: An Empirical Study across Industries and Countries

The sustainable start‐up paradox: Predicting the business and climate performance of start‐ups

Government expenditures and economic growth in the MENA region: A dynamic heterogeneous panel estimation

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