We find robust evidence that presence of state religions reduces entrepreneurial financing in a large cross section of countries. Religious practices such as church attendance increases entrepreneurial financing in countries without state religions, a finding consistent with social capital and...

Using a sample of 56 countries over the 2000-2016 period, we document lower levels of venture capital investments in more religious countries. These results are not specific to any primary religion. Furthermore, we show that the negative relation between religiosity and venture investing mainly...