Friend or Foe? Crowdfunding Versus Credit when Banks are Stressed

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IWH Discussion Papers ; No. 8/2015

Classification and Topics

• Classification: Wirtschaft ; Financial Crises ; Banks; Depository Institutions; Micro Finance Institutions; Mortgages ; Corporate Finance and Governance: General
• Subject: equity crowdfunding ; credit crunch ; bank stress

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Blaseg, Daniel ; Koetter, Michael
• Event: Veröffentlichung
• (who): Leibniz-Institut für Wirtschaftsforschung Halle (IWH)
• (where): Halle (Saale)
• (when): 2015

Further information

• Handle: http://hdl.handle.net/10419/117342
• URN: urn:nbn:de:gbv:3:2-48571
• Last update: 10.03.2025, 11:44 AM CET