The Short-Run Effects of GDPR on Technology Venture Investment

Jian Jia, Ginger Zhe Jin, Liad Wagman

NBER Working Paper No. 25248
Issued in November 2018
NBER Program(s):Industrial Organization

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.

Acknowledgments

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Document Object Identifier (DOI): 10.3386/w25248