The role of crowdfunding in reducing the equity gap in Poland

Abstract

The aim of the paper is to verify if equity crowdfunding has an impact on equity gap reduction among early stage companies in Poland. The analysis is based on crowdfunding campaigns organized on the three most popular platforms in Poland during the 2015–2019 period. The presented research on equity crowdfunding allowed the main goal of the paper to be accomplished, namely to characterize equity crowdfunding in Poland. The results obtained also enabled equity crowdfunding to be placed among other equity capital sources for companies in the early stages of development. The results of the study verify the hypothesis that equity crowdfunding has an impact on equity gap reduction among Polish early stage companies. Our key findings prove that equity crowdfunding in Poland is mainly used by relatively small, early stage companies that operate in various sectors. Another finding is that most of the companies raised capital that qualifies as the Macmillan gap. We also proved that there is a relatively high level of information asymmetry among equity crowdfunding campaigns and provided our own definition of equity crowdfunding.

Triggers and Obstacles to the Development of the FinTech Sector in Poland

“…Although there are almost 350,000 angel investors in Europe, only a few hundred are present in Poland. Equity crowdfunding has not been very popular among Polish companies (in 2015 only one campaign took place), but this situation has been gradually changing (Łukowski and Zygmanowski 2019). The reason for the relatively low popularity of the alternative sources of founding among Polish companies are a lack of knowledge of equity crowdfunding by entrepreneurs from one side, and unfavourable legal conditions from the other one (Kozioł-Nadolna 2018).…”

“…The reason for the relatively low popularity of the alternative sources of founding among Polish companies are a lack of knowledge of equity crowdfunding by entrepreneurs from one side, and unfavourable legal conditions from the other one (Kozioł-Nadolna 2018). However, as Łukowski and Zygmanowski (2019) show, the companies from the technology and finance sectors are the early and eager adopters of this form of financing.…”