GDPR and the Localness of Venture Investment

We examine how investors' tendency to invest locally interacts with Europe's General Data Protection Regulation (GDPR). Using five-year investment data, we demonstrate that GDPR differentially affects investors as a function of their proximity to ventures. We show that GDPR's rollout in May 2018 has negative effects on EU venture investment, and the effects are larger when ventures and lead investors are not in the same state or union. The...