Crowdfunding – a regional policy assessment

Publikation: Konferencebidrag uden forlag/tidsskriftPaper uden forlag/tidsskriftForskningpeer review

17 Downloads (Pure)

Resumé

The entrepreneurial finance literature argues that investors prefer to invest in close proximity to investee firms to facilitate better information exchange, due diligence and investment decisions, and post-investment monitoring. However, crowdfunding has different geographies than e.g. venture capital. Actors are of-ten anonymous, as on stock markets, and geographical proximity seems irrele-vant. Contrary, research indicates that also on-line platform-investors prefer close proximity in investments. However, previous research studies large mar-kets such as the U.S., Australia, U.K., Italy, possibly affecting the extent to which there is an investment ‘home bias’. The first of two interrelated research questions in this paper asks whether, and to which extent, there are geograph-ical effects on direct financing mechanisms like crowdfunding. Affirmative an-swers to this question provide a rationale to embark on a regional policy dis-cussion.

New modes of financing and new actors argueably smoothens the financial sys-tem and could potentially alleviate some of the regional financing gap, which is said to hinder development of regional innovation and entrepreneurial ventures. Following this reasoning, bottom-up driven, private crowdfunding initiatives should be given room for unfolding opportunities for groups at the financial markets (nacent entrepreneurs) who are potentially otherwise marginalised and rationed. Contrary, it could be argued that a more extensive regulation of crowdfunding, as pursued at other parts of financial markets, is expedient and that crowdfunding de-couples finance and competences, contrary to what has been strived for in recent capital market policies. Therefore, the second re-search question is: which problem areas can be identified in crowdfunding, and how should the upsurge of crowdfunding be perceived from a regional innova-tion policy perspective?
OriginalsprogEngelsk
Publikationsdato2018
Antal sider13
StatusUdgivet - 2018
BegivenhedRegional Innovation Policies conference: Responsible Innovation and Regional Development - Western Norway University of Applied Sciences, Bergen, Norge
Varighed: 11 okt. 201813 okt. 2018

Konference

KonferenceRegional Innovation Policies conference
LokationWestern Norway University of Applied Sciences
LandNorge
ByBergen
Periode11/10/201813/10/2018

Fingerprint

Financing
Regional policy
Financial markets
Investors
Proximity
Bottom-up
Finance
Financial system
Capital markets
Regional innovation
Due diligence
Geography
Entrepreneurial ventures
Stock market
Information exchange
Monitoring
Geographical proximity
Italy
Venture capital
Rationale

Citer dette

Christensen, J. L. (2018). Crowdfunding – a regional policy assessment. Afhandling præsenteret på Regional Innovation Policies conference, Bergen, Norge.
Christensen, Jesper Lindgaard. / Crowdfunding – a regional policy assessment. Afhandling præsenteret på Regional Innovation Policies conference, Bergen, Norge.13 s.
@conference{9a4844ca3b094eefb57e7476a8a5c64b,
title = "Crowdfunding – a regional policy assessment",
abstract = "The entrepreneurial finance literature argues that investors prefer to invest in close proximity to investee firms to facilitate better information exchange, due diligence and investment decisions, and post-investment monitoring. However, crowdfunding has different geographies than e.g. venture capital. Actors are often anonymous, as on stock markets, and geographical proximity seems irrelevant. Contrary, research indicates that also on-line platform-investors prefer close proximity in investments. However, previous research studies large markets such as the U.S., Australia, U.K., Italy, possibly affecting the extent to which there is an investment ‘home bias’. The first of two interrelated research questions in this paper asks whether, and to which extent, there are geographical effects on direct financing mechanisms like crowdfunding. Affirmative answers to this question provide a rationale to embark on a regional policy discussion. New modes of financing and new actors argueably smoothens the financial system and could potentially alleviate some of the regional financing gap, which is said to hinder development of regional innovation and entrepreneurial ventures. Following this reasoning, bottom-up driven, private crowdfunding initiatives should be given room for unfolding opportunities for groups at the financial markets (nacent entrepreneurs) who are potentially otherwise marginalised and rationed. Contrary, it could be argued that a more extensive regulation of crowdfunding, as pursued at other parts of financial markets, is expedient and that crowdfunding de-couples finance and competences, contrary to what has been strived for in recent capital market policies. Therefore, the second research question is: which problem areas can be identified in crowdfunding, and how should the upsurge of crowdfunding be perceived from a regional innovation policy perspective?",
author = "Christensen, {Jesper Lindgaard}",
year = "2018",
language = "English",
note = "Regional Innovation Policies conference : Responsible Innovation and Regional Development ; Conference date: 11-10-2018 Through 13-10-2018",

}

Christensen, JL 2018, 'Crowdfunding – a regional policy assessment' Paper fremlagt ved, Bergen, Norge, 11/10/2018 - 13/10/2018, .

Crowdfunding – a regional policy assessment. / Christensen, Jesper Lindgaard.

2018. Afhandling præsenteret på Regional Innovation Policies conference, Bergen, Norge.

Publikation: Konferencebidrag uden forlag/tidsskriftPaper uden forlag/tidsskriftForskningpeer review

TY - CONF

T1 - Crowdfunding – a regional policy assessment

AU - Christensen, Jesper Lindgaard

PY - 2018

Y1 - 2018

N2 - The entrepreneurial finance literature argues that investors prefer to invest in close proximity to investee firms to facilitate better information exchange, due diligence and investment decisions, and post-investment monitoring. However, crowdfunding has different geographies than e.g. venture capital. Actors are often anonymous, as on stock markets, and geographical proximity seems irrelevant. Contrary, research indicates that also on-line platform-investors prefer close proximity in investments. However, previous research studies large markets such as the U.S., Australia, U.K., Italy, possibly affecting the extent to which there is an investment ‘home bias’. The first of two interrelated research questions in this paper asks whether, and to which extent, there are geographical effects on direct financing mechanisms like crowdfunding. Affirmative answers to this question provide a rationale to embark on a regional policy discussion. New modes of financing and new actors argueably smoothens the financial system and could potentially alleviate some of the regional financing gap, which is said to hinder development of regional innovation and entrepreneurial ventures. Following this reasoning, bottom-up driven, private crowdfunding initiatives should be given room for unfolding opportunities for groups at the financial markets (nacent entrepreneurs) who are potentially otherwise marginalised and rationed. Contrary, it could be argued that a more extensive regulation of crowdfunding, as pursued at other parts of financial markets, is expedient and that crowdfunding de-couples finance and competences, contrary to what has been strived for in recent capital market policies. Therefore, the second research question is: which problem areas can be identified in crowdfunding, and how should the upsurge of crowdfunding be perceived from a regional innovation policy perspective?

AB - The entrepreneurial finance literature argues that investors prefer to invest in close proximity to investee firms to facilitate better information exchange, due diligence and investment decisions, and post-investment monitoring. However, crowdfunding has different geographies than e.g. venture capital. Actors are often anonymous, as on stock markets, and geographical proximity seems irrelevant. Contrary, research indicates that also on-line platform-investors prefer close proximity in investments. However, previous research studies large markets such as the U.S., Australia, U.K., Italy, possibly affecting the extent to which there is an investment ‘home bias’. The first of two interrelated research questions in this paper asks whether, and to which extent, there are geographical effects on direct financing mechanisms like crowdfunding. Affirmative answers to this question provide a rationale to embark on a regional policy discussion. New modes of financing and new actors argueably smoothens the financial system and could potentially alleviate some of the regional financing gap, which is said to hinder development of regional innovation and entrepreneurial ventures. Following this reasoning, bottom-up driven, private crowdfunding initiatives should be given room for unfolding opportunities for groups at the financial markets (nacent entrepreneurs) who are potentially otherwise marginalised and rationed. Contrary, it could be argued that a more extensive regulation of crowdfunding, as pursued at other parts of financial markets, is expedient and that crowdfunding de-couples finance and competences, contrary to what has been strived for in recent capital market policies. Therefore, the second research question is: which problem areas can be identified in crowdfunding, and how should the upsurge of crowdfunding be perceived from a regional innovation policy perspective?

M3 - Paper without publisher/journal

ER -

Christensen JL. Crowdfunding – a regional policy assessment. 2018. Afhandling præsenteret på Regional Innovation Policies conference, Bergen, Norge.