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Submit a Manuscript to the Journal
Venture Capital

For a Special Issue on
Entrepreneurial Finance: Implications of COVID-19 and Post Pandemic Challenges

Manuscript deadline
31 December 2022

Cover image - Venture Capital

Special Issue Editor(s)

Muhammad Shahbaz, Beijing Institute of Information Technology, China. Department of Land Economy, University of Cambridge, United Kingdom
[email protected]

Gagan Deep Sharma, Guru Gobind Singh Indraprastha University, New Delhi, India
[email protected]

Muhammad Ali Nasir, University of Huddersfield, United Kingdom
[email protected]

Shawkat Hammoudeh, Drexel University, United Sates
[email protected]

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Entrepreneurial Finance: Implications of COVID-19 and Post Pandemic Challenges

Investments in venture capital (VC) could be erratic and cyclical as they often follow the dynamics of the economy and manifest in the boom-and-bust cycles. Therefore, the investments often rise during periods of economic growth and fall during periods of recessions. Studies on the effects of crises on VC financing of entrepreneurial ventures, such as the tech bubble (1999–2001) and the global financial crisis (2008–2009), find that VC availability decreases after a crisis and that investors shift their attention from riskier new opportunities to more traditional investments in the asset classes already exist in their portfolios (Cumming and Johan, 2012).

Uniquely, the COVID-19 pandemic has several aspects and implications. First, it is a global health catastrophe with far-reaching and possibly long-term economic, social, and political ramifications that outweigh those of previous crises such as the tech bubble or the global financial crisis (GFC) 2008-09. Second, it has prompted extraordinary government reactions, both economically (forced or restricted business closures, access to finance, subventions, and investment programs) and socially (quarantines, curfews, social distance, and travel restrictions) (Sharma, Talan, Srivastava, Yadav, & Chopra, 2020; Sharma, Tiwari, Jain, Yadav, & Srivastava, 2021). These factors can potentially have a crucial impact on how VC investors and entrepreneurs operate since they face restricted in-person meetings and make travel more difficult and expensive, causing due diligence, monitoring, and other operations to be hampered (Bellavitis, Fisch, & McNaughton, 2021). Third, the virus and its variants spread quickly across the world, resulting in a near-instantaneous global crisis. Increased uncertainty during and after crises has the greatest impact on VC investments. To begin with, many VC investors act as agents for major institutional investors (e.g., pension funds, insurance companies, and large banks). Typically, crises have a negative impact on these investors, causing them to reduce their investments in hazardous asset types. As a result, VC investors could have trouble acquiring new money or accessing cash pledged by present investors. Second, the ensuing economic slump may have a detrimental impact on the portfolios of VC investors, making it more difficult for them to make returns on their investments. Third, reduced liquidity as a result of a downturn might hinder their ability to successfully exit investments through IPOs or acquisitions. While the regulatory harmonization is vital for the development of financial markets (Cumming and Johan, 2017), it is important to take into account the fact that the underlying legal frameworks also have crucial implications for the VC and its role in the economy (Cumming and Johan, 2013a and 2013b).

Since April 2020, following from the World Health Organization (WHO) IMF has labelled Covid-19 a pandemic, predicting that it would trigger a considerably worse global recession than the Great Recession. These predictions were confirmed in the light of empirical evidence and hindsight (Treece, 2020 and DEStatis, 2021), in which some nations predicted significant GDP declines by mid-2020. The government's efforts to halt the spread of Covid-19 wreaked havoc on businesses, financial markets, and climate change, among other things (Sharma, Tiwari, Jain, Yadav, & Erkut, 2021). As a result, this uncertainty caused chaos in the VC landscape throughout the world. For example, VC investors may have problems analyzing portfolios, reluctance to conclude new agreements, procrastination in the decision-making process, difficulties raising new funds, or illiquidity issues. Empirical evidence suggests that the factors such as relational and institutional trust and information asymmetries can have crucial implications for the VC (Cumming and Johan, 2008 and Hain et al 2016). The outbreak of COVID-19 has posed unprecedented challenges in the form of uncertainty, trust and information asymmetries; however, our understanding of these challenges is very limited and hence merits further research into the implications of Pandemic for VC.

Motivation for the special issue

To assess the impact of the COVID-19 pandemic on the VC landscape, this special issue will focus on the challenges faced by VC in the times of Covid-19 and implications for the post-pandemic scenario. We especially encourage studies that address this topic from a variety of academic and theoretical viewpoints. This Special issue of ‘Venture Capital: An International Journal of Entrepreneurial Finance’ on the theme ‘Venture Capital Implications of COVID-19 and Post-pandemic Challenges’ shall particularly welcome the multi-study papers, but papers using either of review, conceptual, quantitative and qualitative shall all be considered. Topics include, but are not limited to, the following:

  • Sustainable finance and venture capital in the age of Pandemic
  • Crowdfunding and impact of Pandemic
  • COVID-19 impact on venture capital
  • Low-cost financing for businesses in post-Covid times: Innovative means
  • Venture capital in emerging economies and implications of COVID-19
  • Venture capital in post-Covid startups
  • Financing alternatives for entrepreneurial firms and impact of Pandemic
  • Role of government in mitigating the harmful effects of the pandemic
  • Role of digitization in fostering entrepreneurial finance under the influence of Pandemic

Process for reviewing papers:

The selected high-quality research paper submitted and accepted for presentation in the 3rd International Conference on the Contemporary Issues in Finance, Trade and Macroeconomy (ICOFINT) held at Hilton, Istanbul on 9 - 10th April 2022 will be considered for publication in the ‘Venture Capital: An International Journal of Entrepreneurial Finance’. After the initial screening by the guest editors, the submissions will go through a rigorous double-blind review process. On the compilations of referee reports the editors will make the final decision. The submissions which are found to be internationally excellent in terms of originality, significance and rigour will be considered for publication.

Submission Instructions

Schedule:

Submission Start Date: 30th April, 2022

Submission Deadline: 31st December 2022

Acceptance Deadline: 30th September 2023

Instructions for AuthorsSubmit an Article

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