Year: 2015
Type: preprint
Abstract: Does bank instability push borrowers to use crowdfunding as a source of external finance? We identify stressed banks and link them to a unique, manually constructed sample of 157 new ventures seeking equity crowdfunding. The sample comprises projects from all German equity crowdfunding platforms since 2011, which we compare with 200 ventures that do not use crowdfunding. Crowdfunding is significantly more likely for new ventures that interact with stressed banks. Innovative funding is thus particularly relevant when conventional financiers are facing crises. But crowdfunded ventures are generally also more opaque and risky than new ventures that do not use crowdfunding.
Authors: Daniel Blaseg, Michael Koetter
Institution: Goethe University Frankfurt
Language: English
Subfield: Management Information Systems
Domain: Social Sciences
Open Access status: green
Funder: Deutsche Bundesbank
OpenAlex ID: W2233022902