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New Technology Assessment in Entrepreneurial Financing - Can\n Crowdfunding Predict Venture Capital Investments?

2016/08/25 by Jermain Kaminski, Kaminski, Jermain, Christian Hopp +3
Business, Management and Accounting · Economics, Econometrics and Finance · #Computers and Society (cs.CY) #FOS: Computer and information sciences #FinTech, Crowdfunding, Digital Finance #Microfinance and Financial Inclusion #Private Equity and Venture Capital #Social and Information Networks (cs.SI)

paper · pdf · doi:10.48550/arxiv.1608.07182

openalex publication_date 2016/08/25 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28

Abstract

Recent years have seen an upsurge of novel sources of new venture financing\nthrough crowdfunding (CF). We draw on 54,943 successfully crowdfunded projects\nand 3,313 venture capital (VC) investments throughout the period\n04/2012-06/2015 to investigate, on the aggregate level, how crowdfunding is\nrelated to a more traditional source of entrepreneurial finance, venture\ncapital. Granger causality tests support the view that VC investments follow\ncrowdfunding investments. Cointegration tests also suggest a long-run\nrelationship between crowdfunding and VC investments, while impulse response\nfunctions (IRF) indicate a positive effect running from CF to VC within two to\nsix months. Crowdfunding seems to help VC investors in assessing future trends\nrather than crowding them out of the market.\n

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