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Data and Code for: Venture Capital’s Role in Financing Innovation: How far we have come and how much we still need to learn

Version
V0
Resource Type
Dataset : aggregate data, event/transaction data, observational data
Creator
  • Lerner, Josh (Harvard University. Harvard Business School. Division of Research)
  • Nanda, Ramana (Harvard University. Harvard Business School. Division of Research)
Publication Date
2020-07-27
Free Keywords
investments; investors; companies; startup companies; fundraising; stock markets; technology; information technology; innovation
Description
  • Abstract

    In this paper, we argue that despite the innovation and growth generated by the venture capital (VC) industry, VC also has very real limitations in advancing substantial technological change. We identify three main issues: (1) The very narrow band of technological innovations that fits the requirements of institutional VC investors, (2) the relatively small number of VC investors who hold and shape the direction of a substantial fraction of capital that is deployed into financing radical technological change, and (3) The relaxation of the intense emphasis on corporate governance by VCs in recent years.

    We begin by tracing the growth of the institutional venture capital industry. We then highlight how technological and institutional changes in the past two decades have narrowed the focus of and concentrated the capital invested by VCs. We highlight recent research examining the potential real effects that these changes can have. We end by speculating on potential adaptations to the venture capital model might enable a broader base of ideas and technologies to receive risk capital.
Temporal Coverage
  • 1980-01-01 / 2019-12-31
    Time Period: Tue Jan 01 00:00:00 EST 1980--Tue Dec 31 00:00:00 EST 2019
  • 2019-11-01 / 2020-04-24
    Collection Date(s): Fri Nov 01 00:00:00 EDT 2019--Fri Apr 24 00:00:00 EDT 2020
Geographic Coverage
  • United States
Sampled Universe
Venture capital investments in the United States.
Availability
Download
This study is freely available to the general public via web download.
Relations
  • Has version
    DOI: 10.3886/E119152V1
Publications
  • Lerner, Josh, and Nanda Ramana. “Too Much of a Good Thing? The Venture Capital Boom and Its Consequences for Innovation.” Journal of Economic Perspectives, n.d.

Update Metadata: 2020-07-29 | Issue Number: 1 | Registration Date: 2020-07-29

Lerner, Josh; Nanda, Ramana (2020): Data and Code for: Venture Capital’s Role in Financing Innovation: How far we have come and how much we still need to learn. Version: V0. ICPSR - Interuniversity Consortium for Political and Social Research. Dataset. https://doi.org/10.3886/E119152