Advertisement

The Role of Equity Crowdfunding in Financing SMEs: Evidence from a Sample of European Platforms

  • Veronica De Crescenzo
Chapter
Part of the Palgrave Macmillan Studies in Banking and Financial Institutions book series (SBFI)

Abstract

To assess the fundraising potential of equity crowdfunding for SMEs and start-up firms, this chapter presents an analysis of the features of a sample of funding campaigns seeking funds on five European crowdfunding platforms. The expansion of equity crowdfunding in Europe began in the second half of 2011 and since then there has been gradual and continuous growth. Our results reveal that technological start-ups are not the only type of firm seeking equity funds and that equity crowdfunding can be considered a new type of funding model for established companies and for firms operating in more traditional fields of business. Consequently, we can also affirm that the ways in which equity crowdfunding is regulated will affect its capacity to supplement traditional sources of finance.

Keywords

Business Plan Investor Protection Target Company Target Amount Successful Funding 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

References

  1. Borello, G., V. De Crescenzo, and F. Pichler. 2015. The funding gap and the role of financial return crowdfunding: Some evidence from European platforms. Journal of Internet Banking and Commerce 20: 1 article 4.Google Scholar
  2. European Commission. 2014. Unleashing the potential of crowdfunding in the European Union, Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions, March. http://ec.europa.eu/internal_market.Google Scholar
  3. European Crowdfunding Network. 2014b. Spanish regulation set to stifle crowdfunding?, March. www.eurocrowd.org.Google Scholar
  4. Hornuf, L., and A. Schwienbacher. 2015. Funding dynamics in crowdinvesting. SSRN Working Paper, September.Google Scholar
  5. Kirby, E., and S. Worner. 2014. Crowd-funding: An infant industry growing fast. IOSCO Staff Working Paper SWP3/2014, February.Google Scholar
  6. Wardrop, R., B. Zhang, R. Rau, and M. Gray. 2015. Moving mainstream. The European alternative finance benchmarking report. Cambridge Centre for Alternative Finance and Ernst & Young, February. www.jbs.cam.ac.uk.Google Scholar

Copyright information

© The Editor(s) (if applicable) and The Author(s) 2016

Authors and Affiliations

  • Veronica De Crescenzo
    • 1
  1. 1.University of VeronaVERONAItaly

Personalised recommendations