Expanding corporate finance perspectives to equity crowdfunding

Vismara, Silvio

doi:10.1007/s10961-021-09903-z

Cited by 38 publications

(13 citation statements)

References 38 publications

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“…Drover et al (2017) consider all the financial milestones and actors involved in the entrepreneurial equity financing process but they do not place venture valuations at the core of their analyses. Vismara (2022) expands the corporate finance perspectives to equity crowdfunding, considering also the drivers of valuation. Finally, from a different perspective, Cummings et al (2020) review and qualitatively analyze a large corpus of 540 public comments submitted by stakeholders in response to new US equity crowdfunding regulations, from which they derive and present unanswered questions and fruitful research directions in this emerging domain.…”

Section: Introductionmentioning

confidence: 99%

What drives the valuation of entrepreneurial ventures? A map to navigate the literature and research directions

2022

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The drivers of the valuations of entrepreneurial ventures are an important issue in entrepreneurial finance, but related research is fragmented. The theoretical perspectives and the drivers highlighted by previous studies differ based on the financial milestones during a venture’s lifecycle in which the valuation is performed (e.g., venture capital investments, initial public offerings, acquisitions). The introduction of new digital financing channels (e.g., crowdfunding, initial coin offerings) that allow retail investors to directly invest in entrepreneurial ventures challenge our understanding of the drivers of valuation. This change has also increased the diversity in the sequence of financial milestones that ventures go through, with important implications for valuation. We conduct a systematic literature review and develop a map highlighting how and why the drivers of venture valuations and their underlying theoretical lenses vary across the different milestones that ventures go through. The map allows us to outline new promising avenues for future research.

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Section: Introductionmentioning

confidence: 99%

What drives the valuation of entrepreneurial ventures? A map to navigate the literature and research directions

2022

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“…While our study extensively probes the impact of digitalization on firm performance and delves into the resource composition of firms, there remains an under‐explored area concerning how other alternative resources – such as crowdfunding (Ahlstrom, Cumming and Vismara, 2018; Vismara, 2022; Vismara, Benaroio and Carne, 2017) and innovations like blockchain and initial coin offerings (Fisch, Meoli and Vismara, 2022; Rawhouser, Vismara and Kshetri, 2023) – concurrently influence firm growth. Future studies could enrich this domain by exploring the intricate interplay of various internal and external knowledge and financial sources.…”

Section: Discussionmentioning

confidence: 99%

Digitalization, Resource Mobilization and Firm Growth in Emerging Industries

Audretsch,

Belitski

2023

British J of Management

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While most firms do not grow, a small number of firms grow and enhance their equity and debt capital intensity. Researchers, managers and policymakers question the role that digital technologies play in propelling firm growth and resource mobilization. Using a longitudinal dataset from emerging industries in the United Kingdom during 2010–2019, we distinguish three types of firms and examine their growth and resource mobilization. First, we find that digitally advanced firms grow faster and enhance equity capital intensity while reducing debt capital intensity. Second, we find that the relationship between digitally advanced firms and firm growth is mediated by equity capital intensity. Third, firm size positively moderates the effect of digitally advanced firms on firm growth. Firm age does not moderate this relationship. Other firm‐level characteristics, such as number of digital tools, firm productivity, accelerator experience and stage of growth, may either impede or facilitate a firm's growth and resource mobilization. This study helps policymakers and firm managers in emerging industries better understand the role of digitalization and resources in firm growth.

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“…The COVID-19 pandemic reduced access to finance, especially from traditional finance (Santos and Laureano 2022). The paper is built on the expectation that banks with sophisticated managers anticipate in advance the negative economic impact of COVID-19 and, as a result, decrease loan amounts prior to the crisis to better smooth loans intertemporally (Vismara 2022). Therefore, the COVID-19 pandemic decreases crowdfunding campaign success (Zribi 2022).…”

Section: Development Of the Research Hypothesesmentioning

confidence: 99%

The Drivers of Successful Crowdfunding Projects in Africa during the COVID-19 Pandemic

Mamaro

Sibindi

2023

JRFM

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The challenge of accessing finance by entrepreneurs from traditional financial sources is pervasive. The COVID-19 pandemic further exacerbated the problem of limited access to finance from banks. Against this backdrop, the objective of the study was to determine the factors driving crowdfunding success during the COVID-19 pandemic in Africa. The ordinary least squares (OLS) and probit regression models were estimated to analyse 215 crowdfunding projects in Africa. The results of the study documented that targeted amounts (TA), comments (CMM), and the COVID-19 pandemic were negative and significant drivers of crowdfunding success. Furthermore, duration (DRN) was negative and significantly affected crowdfunding success. Conversely, images (IM), videos (VD), backers (BCK), and updates (UPD) were positive and significantly affected crowdfunding success. The study contributes to the body of knowledge by investigating the drivers of crowdfunding success during the COVID-19 pandemic period, which hitherto had not been extensively researched.

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Expanding corporate finance perspectives to equity crowdfunding

Cited by 38 publications

References 38 publications

What drives the valuation of entrepreneurial ventures? A map to navigate the literature and research directions

What drives the valuation of entrepreneurial ventures? A map to navigate the literature and research directions

Digitalization, Resource Mobilization and Firm Growth in Emerging Industries

The Drivers of Successful Crowdfunding Projects in Africa during the COVID-19 Pandemic

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