The Short-Run Effects of GDPR on Technology Venture Investment

43 Pages Posted: 12 Nov 2018 Last revised: 28 Dec 2025

See all articles by Jian Jia

Jian Jia

Illinois Institute of Technology - Stuart School of Business

Ginger Zhe Jin

- Department of Economics; National Bureau of Economic Research (NBER)

Liad Wagman

Rensselaer Polytechnic Institute (RPI) - Lally School of Management

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Date Written: November 2018

Abstract

The General Data Protection Regulation (GDPR) came into effect in the European Union in May 2018. We study its short-run impact on investment in new and emerging technology firms. Our findings indicate negative post-GDPR effects on EU ventures, relative to their US counterparts. The negative effects manifest in the overall dollar amounts raised across funding deals, the number of deals, and the dollar amount raised per individual deal.

Suggested Citation

Jia, Jian and Jin, Ginger Zhe and Wagman, Liad, The Short-Run Effects of GDPR on Technology Venture Investment (November 2018). NBER Working Paper No. w25248, Available at SSRN: https://ssrn.com/abstract=3282948

Jian Jia (Contact Author)

Illinois Institute of Technology - Stuart School of Business ( email )

Stuart Graduate School of Business
565 W. Adams St. 4th floor
Chicago, IL 60661
United States

Ginger Zhe Jin

- Department of Economics ( email )

College Park, MD 20742
United States
301-405-3484 (Phone)
301-405-3542 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Liad Wagman

Rensselaer Polytechnic Institute (RPI) - Lally School of Management ( email )

110 8th St
Troy, NY 12180
United States

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