Cryptocurrency and Venture Capital: A Systematic Review of Blockchain-Based Funding Mechanisms for Startups
Year: 2025
Type: review
Study design: Systematic Review
Abstract: This Systematic Literature Review (SLR) analyzes 38 empirical studies published between 2015 and 2025 (sourced from Scopus and Sci-ScienceDirect) to map blockchain-based funding mechanisms in the context of venture capital (VC) and entrepreneurial finance. The review addresses four research questions concerning the evolution of these mechanisms, their impact on startup performance, and associated risks and regulatory challenges. The findings establish a robust taxonomy of mechanisms, including Initial Coin Offerings (ICOs), Security Token Offerings (STOs), and Decentralized Autonomous Organizations (DAOs), each presenting unique features and regulatory profiles. Crucially, the review highlights significant gaps in long-term performance data, revealing challenges related to investor protection, fraud risk, and regulatory uncertainty. By integrating Signaling Theory and Governance Theory, the study discusses how tokenomics and team credibility function as signals instead of traditional VC due diligence, presenting a critical comparison between token-based funding and traditional-al venture capital financing. This paper offers valuable insights for academics, policymakers, and industry practitioners by providing a com-comprehensive map of the field, suggesting avenues for future empirical research, and offering focused policy implications regarding regulation and investor safety in emerging markets.
DOI: 10.14419/0jdj8381
Institution: Lambung Mangkurat University
Subfield: Management Information Systems
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W4417459017
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