Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/117342
Authors: 
Blaseg, Daniel
Koetter, Michael
Year of Publication: 
2015
Series/Report no.: 
IWH Discussion Papers 8/2015
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.
Subjects: 
equity crowdfunding
credit crunch
bank stress
JEL: 
G01
G21
G30
Document Type: 
Working Paper

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