(R)Evolution in Entrepreneurial Finance? The Relationship between Cryptocurrency and Venture Capital Markets

Shakhnov, Kirill; Zaccaria, Luana

doi:10.2139/ssrn.3613261

Cited by 7 publications

(3 citation statements)

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“…(2018), Li and Mann (2018), Malinova and Park (2018), Catalini and Gans (2019), Goldstein et al (2019), Gryglewicz et al (2020), and Shakhnov and Zaccaria (2020). Close to our line of inquiry, Gryglewicz et al (2020) develop a unified model of the issuance and design of tokens.…”

Section: Plain English Summarymentioning

confidence: 96%

Security Token Offerings

2020

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Section: Plain English Summarymentioning

confidence: 96%

Security Token Offerings

2020

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Section: Introductionmentioning

confidence: 97%

Security token offerings

2021

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This paper posits that distinguishing security token offerings (STOs) from initial coin offerings (ICOs) is important for the study of entrepreneurial finance. We first provide a working definition of a security token and present an overview of the STO market using a unique STO sample. The STO activity developed after the end of the ICO market bubble. The STO market is, however, still a nascent market. STOs are geographically dispersed but concentrated in jurisdictions with accommodating securities laws. Next, we explore STO success factors. We show that various issuer and offering characteristics traditionally used in the ICO literature also matter for STO success. We also find that success is associated with good governance practices, consistent with the corporate finance literature. We conclude by discussing the implications of native digital securities, the next generation of security tokens, for entrepreneurial finance.

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“…Understanding the behavior of institutional investors and its effect on the structure and evolution of the cryptocurrency markets is therefore of paramount importance to quantify the mutual impact between DeFi and traditional entrepreneurial finance [4,31]. So far, most of the research available is based on qualitative surveys by private companies of investors in Europe and U.S., which aim to identify market trends and issues, e.g., barriers to adoption and current channels to exposure in crypto [3,4].…”

Section: Introductionmentioning

confidence: 99%

Crypocurrency co-investment network: token returns reflect investment patterns

Mungo¹,

Bartolucci²,

Alessandretti³

2023

Preprint

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Since the introduction of Bitcoin in 2009, the dramatic and unsteady evolution of the cryptocurrency market has also been driven by large investments by traditional and cryptocurrency-focused hedge funds. Notwithstanding their critical role, our understanding of the relationship between institutional investments and the evolution of the cryptocurrency market has remained limited, also due to the lack of comprehensive data describing investments over time. In this study, we present a quantitative study of cryptocurrency institutional investments based on a dataset collected for 1324 currencies in the period between 2014 and 2022 from Crunchbase, one of the largest platforms gathering business information. We show that the evolution of the cryptocurrency market capitalization is highly correlated with the size of institutional investments, thus confirming their important role. Further, we find that the market is dominated by the presence of a group of prominent investors who tend to specialise by focusing on particular technologies. Finally, studying the co-investment network of currencies that share common investors, we show that assets with shared investors tend to be characterized by similar market behavior. Our work sheds light on the role played by institutional investors and provides a basis for further research on their influence in the cryptocurrency ecosystem.

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(R)Evolution in Entrepreneurial Finance? The Relationship between Cryptocurrency and Venture Capital Markets

Cited by 7 publications

References 10 publications

Security Token Offerings

Security Token Offerings

Security token offerings

Crypocurrency co-investment network: token returns reflect investment patterns

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