The Short-Run Effects of GDPR on Technology Venture Investment

58 Pages Posted: 5 Mar 2019 Last revised: 26 May 2020

See all articles by Jian Jia

Jian Jia

Illinois Institute of Technology - Stuart School of Business

Ginger Zhe Jin

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

Liad Wagman

Illinois Institute of Technology - Stuart School of Business, IIT

Multiple version iconThere are 2 versions of this paper

Date Written: November 8, 2019

Abstract

The General Data Protection Regulation (GDPR) was enacted in the European Union in April 2016 and went into effect in May 2018. We study its impact on investment in new and emerging technology firms. Our findings indicate negative post-GDPR effects after its 2018 rollout on European ventures, relative to their counterparts in the US and the rest of the world, and considerably lesser effects after its 2016 enactment and before implementation. The negative effects manifest in the number of and amounts raised in financing deals, and are particularly pronounced for newer, data-related, and business-to-consumer ventures.

Keywords: Data, Regulation, GDPR, Investment, Venture Financing

JEL Classification: L13, D8, L5, L15, D43

Suggested Citation

Jia, Jian and Jin, Ginger Zhe and Wagman, Liad, The Short-Run Effects of GDPR on Technology Venture Investment (November 8, 2019). Available at SSRN: https://ssrn.com/abstract=3278912 or http://dx.doi.org/10.2139/ssrn.3278912

Jian Jia

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

Stuart Graduate School of Business
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United States

Ginger Zhe Jin

University of Maryland - 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
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Liad Wagman (Contact Author)

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

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Chicago, IL 60661
United States
7739809883 (Phone)

HOME PAGE: http://https://lwagman.org

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