The Short-Run Effects of GDPR on Technology Venture Investment

43 Pages Posted: 5 Mar 2019 Last revised: 3 Jun 2019

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: May 31, 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 EU ventures, relative to their US counterparts, but no such effects following its 2016 enactment. The negative effects manifest in the total amounts raised across funding deals, the number of deals, and the amount raised per individual deal, and are particularly pronounced for newer and data-related 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 (May 31, 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
565 W. Adams St. 4th floor
Chicago, IL 60661
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
United States

Liad Wagman (Contact Author)

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

565 W Adams St Suite 452
Chicago, IL 60661
United States
7739809883 (Phone)

HOME PAGE: http://lwagman.org

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