Plausibly Exogenous [1772] - Venture Capital (12/10/2024)

LHS Variable
Geographic clustering of high-growth startups

RHS Variable
Venture capital funding

Source of Exogenous Variation
A rule change that disproportionately impacted U.S. regions that historically lacked VC financing via a restriction of banks to invest in the asset class

- Chen and Ewens (2023), “Venture Capital and Startup Agglomeration”