Venture Capital

Core research on how venture firms raise funds, select startups, structure investments, monitor companies, and ultimately generate returns.

[ 37 PAPERS ]

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ASSET: 45e270a6

When digital meets traditional financial intermediaries: How equity crowdfunding shapes venture capital value added

Samia Alam Vincenzo Butticè

Published: 2026-05-01
Signal: Must Read
DOI: 10.1016/j.irfa.2026.105152
Paper ID: 45e270a6

Abstract

This study contributes to the debate on the post-campaign effects of equity crowdfunding by investigating how prior engagement in equity crowdfunding influences the value added by subsequent venture capital investment, and how this relationship is shaped by the governance structure adopted during the crowdfunding campaign. Analysing 2514 ventures that secured venture capital funding in the United Kingdom, Germany, France, or Italy between 2015 and 2021, we find that ventures previously funded through equity crowdfunding exhibit lower post-investment growth than those backed solely by venture capital. However, this negative effect is significantly attenuated when the crowdfunding campaign was conducted through a nominee shareholder structure. This study emphasizes the importance of designing financing sequences according to specific business needs, as well as the importance of managing the investor base, mitigating coordination and governance costs. • Prior ECF reduces asset growth following VC funding. • Governance structures in ECF shape how effectively VCs add value. • With nominee shareholder structure, VC impact is preserved after ECF. • Results hold across multiple identification strategies.

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Tracked Topics: 8
Screened Papers: 13,488
Canonical Papers: 395
Live Signals: 183
Must-Reads: 140