Showing results 1 - 10 of 29
| Ramana Nanda
2020, Book Chapter: "Venture capital investment across the world has surged in the past two decades but has been disproportionately directed towards a subset of innovations that can generate returns in a short period of time. More complex technologies that are expensive and time-consuming to de-risk have received relatively less capital in recent years, despite great societal need. This is particularly true for nascent technologies building on…
| Josh Lerner | Ramana Nanda
July 2020, Dataset: "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…
| Josh Lerner | Ramana Nanda
2020, Paper, "Venture capital is associated with some of the most high-growth and influential firms in the world. Academics and practitioners have effectively articulated the strengths of the venture model. At the same time, venture capital financing also has real limitations in its ability to advance substantial technological change. Three issues are particularly concerning to us: 1) the very narrow band of technological innovations that fit…
| Josh Lerner | Ramana Nanda
May 14, 2020, Paper, "Governments worldwide have taken steps to bolster their venture capital sectors in response to the COVID-19 crisis. This column questions whether venture-backed innovation is particularly vulnerable to economic downturns, and finds that early-stage venture investment falls sharply during recessions. The quantity and quality of venture-backed innovation declines particularly for early-stage firms, underscoring the concerns…
| Josh Lerner | Ramana Nanda
2020, Paper, "Although late-stage venture capital (VC) activity did not change dramatically in the first two months after the COVID-19 pandemic reached the U.S., early-stage VC activity declined by 38%. The particular sensitivity of early-stage VC investment to market conditions-which we show to be common across recessions spanning four decades from 1976 to 2017-raises questions about the pro-cyclicality of VC and its implications for innovation…
| Ramana Nanda | Matthew Rhodes-Kropf
Coordination Frictions in Venture Capital Syndicates. Ramana Nanda, Matthew Rhodes-Kropf, 2019, Book Chapter, "A clear implication of these potential frictions is that entrepreneurs need to be careful about how to select and build the syndicate of VC investors that back their firm … 18–037). Harvard Business School…"…
| Ramana Nanda | William Kerr
Infrastructure and Finance Evidence from India’s GQ Highway Network. William Kerr, Ramana Nanda, June 2019, Paper, "This paper uses the construction of India’s Golden Quadrangle central highway network, together with comprehensive loan data from the Reserve Bank of India, to investigate the interaction between infrastructure development and financial sector depth. The paper identifies a disproportionate increase in loan count and average loan…
| Ramana Nanda | Jeffrey Bussgang
The Hidden Costs of Initial Coin Offerings. Jeffrey Bussgang, Ramana Nanda, November 7, 2018, Paper, "In recent years, much has been written about how the Blockchain is poised to transform traditional industries such as banking, real estate, and healthcare. More recently, it has gained attention as a way to finance new ventures, through what is known as an Initial Coin Offering (ICO). Less noticed, though, is ICOs appear almost antithetical to…
| Ramana Nanda | Matthew Rhodes-Kropf
Coordination Frictions in Venture Capital Syndicates. Ramana Nanda, Matthew Rhodes-Kropf, April 11, 2017, Paper, "An extensive literature on venture capital has studied asymmetric information and agency problems between investors and entrepreneurs, examining how separating entrepreneurs from the investor can create frictions that might inhibit the funding of good projects. It has largely abstracted away from the fact that a startup typically…
| Ramana Nanda
Can Paying Firms More Quickly Affect Aggregate Employment. Ramana Nanda, January 2017, Paper, "We study the impact of Quickpay, a federal reform that indefinitely accelerated payments to small business contractors of the U.S. government. Despite treated firms being paid just 15 days sooner, we find a strong direct effect of the reform on county-sector employment growth. Importantly, however, we also document substantial crowding out of non-…