The impact of COVID-19 on venture capital´s level of investments
Autor(a) principal: | |
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Data de Publicação: | 2021 |
Tipo de documento: | Dissertação |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10400.14/35287 |
Resumo: | This investigation analyzes the impact of the COVID-19 pandemic on venture capitals' investment levels, including American and European venture capital firms. By employing regression analysis, it is found that venture capitals lowered their investment levels by 2.5% due to the macroeconomic shock and the uncertainty caused by the pandemic. When comparing regions, the virus's impact is more severe in the European countries, accounting for a 4% decrease in the raised amount, while American deals did not present a significant change. These drops, however, can only be seen in the seed funding rounds, being early and later stages not significantly affected by the pandemic. We argue that the entrepreneurial activity is being affected by the fear and uncertainty about the future and that venture capitals are focusing more on existing funds than looking for new investments, leading to a lower seed investment level. Lastly, it is studied the impact of the pandemic on two industries - Healthcare and Technology. Results yielded an increase of 6% in the raised amounts relative to healthcare companies, while technology companies received 5% less funding since the COVID-19 outbreak. As an explanation, it is argued that healthcare represented a growing need for everyone under lockdown. |
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The impact of COVID-19 on venture capital´s level of investmentsVenture capitalCOVID-19CoronavirusCrisisInvestment levelsSeed stage of investmentsEarly stage of investmentsLater stage of investmentsSociedade de capital de riscoCriseNíveis de investimentoRonda de financiamento inicialRonda de financiamento intermédiaRonda de financiamento posteriorDomínio/Área Científica::Ciências Sociais::Economia e GestãoThis investigation analyzes the impact of the COVID-19 pandemic on venture capitals' investment levels, including American and European venture capital firms. By employing regression analysis, it is found that venture capitals lowered their investment levels by 2.5% due to the macroeconomic shock and the uncertainty caused by the pandemic. When comparing regions, the virus's impact is more severe in the European countries, accounting for a 4% decrease in the raised amount, while American deals did not present a significant change. These drops, however, can only be seen in the seed funding rounds, being early and later stages not significantly affected by the pandemic. We argue that the entrepreneurial activity is being affected by the fear and uncertainty about the future and that venture capitals are focusing more on existing funds than looking for new investments, leading to a lower seed investment level. Lastly, it is studied the impact of the pandemic on two industries - Healthcare and Technology. Results yielded an increase of 6% in the raised amounts relative to healthcare companies, while technology companies received 5% less funding since the COVID-19 outbreak. As an explanation, it is argued that healthcare represented a growing need for everyone under lockdown.Esta tese analisa o impacto da pandemia COVID-19 nos níveis de investimento das sociedades de capitais de risco, em empresas americanas e europeias. Através de regressões lineares, verifica-se que as sociedades de capitais de risco reduziram os níveis de investimento em 2.5% devido ao choque macroeconômico e à incerteza causada pela pandemia. Na comparação das regiões, o impacto do vírus é mais acentuado nos países europeus, correspondendo a uma redução de 4% no valor arrecadado, enquanto que os negócios americanos não apresentam variação significativa. Estas quedas, no entanto, só podem ser verificadas nas rondas de financiamento inicial, sendo os estágios intermédios e posteriores não significativamente afetados pela pandemia. Argumentamos que o empreendedorismo está a ser afetado pelo medo e incerteza sobre o futuro, e ainda que as sociedades estão-se a concentrar mais nos fundos existentes do que na pesquisa de novos investimentos, levando a um menor nível de investimento inicial. Por fim, é estudado o impacto da pandemia em duas indústrias - Saúde e Tecnologia. Os resultados apresentam um aumento de 6% nos valores relativos às empresas de saúde, enquanto as empresas de tecnologia receberam 5% a menos de financiamento desde o aparecimento da COVID-19. Como explicação, argumenta-se que a saúde representava uma necessidade crescente para todos os que estavam sujeitos ao confinamento.Fidalgo, Eva SchliephakeVeritati - Repositório Institucional da Universidade Católica PortuguesaAlmeida, Tiago Sardinha de2021-09-29T08:32:30Z2021-01-252021-012021-01-25T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/masterThesisapplication/pdfhttp://hdl.handle.net/10400.14/35287TID:202673960enginfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-07-12T17:40:47Zoai:repositorio.ucp.pt:10400.14/35287Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T18:28:39.341382Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
The impact of COVID-19 on venture capital´s level of investments |
title |
The impact of COVID-19 on venture capital´s level of investments |
spellingShingle |
The impact of COVID-19 on venture capital´s level of investments Almeida, Tiago Sardinha de Venture capital COVID-19 Coronavirus Crisis Investment levels Seed stage of investments Early stage of investments Later stage of investments Sociedade de capital de risco Crise Níveis de investimento Ronda de financiamento inicial Ronda de financiamento intermédia Ronda de financiamento posterior Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
title_short |
The impact of COVID-19 on venture capital´s level of investments |
title_full |
The impact of COVID-19 on venture capital´s level of investments |
title_fullStr |
The impact of COVID-19 on venture capital´s level of investments |
title_full_unstemmed |
The impact of COVID-19 on venture capital´s level of investments |
title_sort |
The impact of COVID-19 on venture capital´s level of investments |
author |
Almeida, Tiago Sardinha de |
author_facet |
Almeida, Tiago Sardinha de |
author_role |
author |
dc.contributor.none.fl_str_mv |
Fidalgo, Eva Schliephake Veritati - Repositório Institucional da Universidade Católica Portuguesa |
dc.contributor.author.fl_str_mv |
Almeida, Tiago Sardinha de |
dc.subject.por.fl_str_mv |
Venture capital COVID-19 Coronavirus Crisis Investment levels Seed stage of investments Early stage of investments Later stage of investments Sociedade de capital de risco Crise Níveis de investimento Ronda de financiamento inicial Ronda de financiamento intermédia Ronda de financiamento posterior Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
topic |
Venture capital COVID-19 Coronavirus Crisis Investment levels Seed stage of investments Early stage of investments Later stage of investments Sociedade de capital de risco Crise Níveis de investimento Ronda de financiamento inicial Ronda de financiamento intermédia Ronda de financiamento posterior Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
description |
This investigation analyzes the impact of the COVID-19 pandemic on venture capitals' investment levels, including American and European venture capital firms. By employing regression analysis, it is found that venture capitals lowered their investment levels by 2.5% due to the macroeconomic shock and the uncertainty caused by the pandemic. When comparing regions, the virus's impact is more severe in the European countries, accounting for a 4% decrease in the raised amount, while American deals did not present a significant change. These drops, however, can only be seen in the seed funding rounds, being early and later stages not significantly affected by the pandemic. We argue that the entrepreneurial activity is being affected by the fear and uncertainty about the future and that venture capitals are focusing more on existing funds than looking for new investments, leading to a lower seed investment level. Lastly, it is studied the impact of the pandemic on two industries - Healthcare and Technology. Results yielded an increase of 6% in the raised amounts relative to healthcare companies, while technology companies received 5% less funding since the COVID-19 outbreak. As an explanation, it is argued that healthcare represented a growing need for everyone under lockdown. |
publishDate |
2021 |
dc.date.none.fl_str_mv |
2021-09-29T08:32:30Z 2021-01-25 2021-01 2021-01-25T00:00:00Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/masterThesis |
format |
masterThesis |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10400.14/35287 TID:202673960 |
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http://hdl.handle.net/10400.14/35287 |
identifier_str_mv |
TID:202673960 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
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info:eu-repo/semantics/openAccess |
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openAccess |
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application/pdf |
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Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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RCAAP |
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RCAAP |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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