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Work from home amenability and venture capital financing during COVID-19

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Listed:
  • Jagriti Srivastava

    (Indian Institute of Management Kozhikode)

  • Balagopal Gopalakrishnan

    (Indian Institute of Management Kozhikode)

Abstract

This paper examines the impact of COVID-19 on venture capital financing of firms. We find a significant shift in the profile of firms that obtain venture capital financing during the pandemic-induced economic crisis. Firms in industries that are more amenable to work from home obtain greater amounts of financing. Growthstage firms operating in amenable industries are able to obtain higher financing than early-stage firms. The higher financing obtained by firms in amenable industries is driven by venture capital funds focused on the domestic market. Additionally, the higher financing is obtained from a single venture capital investor rather than a consortia of investors. Taken together, the preference of venture capital funds indicate a less risk-averse behaviour in financing firms amenable to remote working. The findings of our study using monthly firm-level data provide insights on venture capital financing during the pandemic.Length: 43 pages

Suggested Citation

  • Jagriti Srivastava & Balagopal Gopalakrishnan, 2021. "Work from home amenability and venture capital financing during COVID-19," Working papers 458, Indian Institute of Management Kozhikode.
    • Handle: RePEc:iik:wpaper:458
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    Keywords

    COVID-19; Venture capital; financing; work from home;
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