The Short-Run Effects of GDPR on Technology Venture Investment
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.
Jia gratefully acknowledges support from the NET Institute. Wagman gratefully acknowledges support from Data Catalyst and from the NET Institute. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.