questions about the pro-cyclicality of VC and its implications for innovation, especially in light of the common narrative that … VC is relatively insulated from public markets. We find that the implications for innovation are not benign: innovation … discussion on the nature of innovation across business cycles …

the average patent, VC-backed innovation is substantially more procyclical than the broader economy. This is driven early …-stage startups, whose innovation in recessions is relatively less cited, less original, less general, and less related to fundamental …