Improving the Role of Equity Crowdfunding in Europe's Capital Markets
نویسندگان
چکیده
• Equity crowdfunding is more complex than other forms of crowdfunding and requires proper checks and balances if it is to provide a viable channel for financial intermediation in the seed and early-stage market in Europe. It is important to explore this new channel of funding for young and innovative firms given the critical role these start-ups can play job creation and economic growth in Europe.
منابع مشابه
Venture Capital in Europe’s Common Market: a Quantitative Description
This paper offers a quantitative description of European private equity markets and compares the recent development in these markets with the development of the US venture capital market. European markets for private equity vary considerably with respect to the investments in young high-technology enterprises, as well as with respect to the types of passive investors who invest capital in priva...
متن کاملAre Syndicates the Killer App of Equity Crowdfunding?
Information asymmetry presents a challenge to equity crowdfunding just as in other markets for equity capital. Investors are less likely to finance startups when it is difficult to assess quality. We argue that syndicates reduce market failures caused by information asymmetry by shifting the focal investment activities of the crowd from startups to lead investors. Syndicates align incentives of...
متن کاملForeign Speculators and Emerging Equity Markets
We propose a cross-sectional time-series model to assess the impact of market liberalizations in emerging equity markets on the cost of capital, volatility, beta, and correlation with world market returns. Liberalizations are defined by regulatory changes, the introduction of depositary receipts and country funds, and structural breaks in equity capital flows to the emerging markets. We control...
متن کاملEquity Markets and Economic Development: What Do We Know
The objective of this paper is to review the transmission mechanisms uniting equity market development and economic growth in developing countries. We find that the theoretical impact of equity markets is ambiguous. At the domestic level, the allocation function of equity markets appears conditioned by the extent of informational efficiency. Turning to international linkages, theoretical models...
متن کاملA National Snapshot of Rural Equity Market Innovation
S mall businesses form the foundation of most rural and urban economies. To grow and prosper, these enterprises need access to equity capital as well as the debt capital provided by traditional banking institutions. While debt markets function well in most rural places, rural equity markets tend to be unorganized or nonexistent (RUPRI Rural Finance Task Force). The impetus for the Rural Policy ...
متن کامل