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Do local innovation systems promote successful equity crowdfunding campaigns? Evidence from Italy

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  • Battaglia, Francesca
  • Regoli, Andrea
  • Agnese, Paolo

Abstract

Our paper explores the relationship between the geographical location within a local innovation system (LIS) of the Italian ventures that have launched an equity crowdfunding project and the success of the campaign. Specifically, drawing on a data set of 356 crowdfunded projects over the period 2015–2019, through a Difference-in-Differences (DiD) approach, our results show that, after the entry into force of the 2018 Consob regulation, the probability of projects’ success increases more for those campaigns launched by ventures located in innovative areas. The results are robust to the choice of both the response variables and the treatment indicator. Moreover, we used a placebo test to check the validity of the approach.

Suggested Citation

  • Battaglia, Francesca & Regoli, Andrea & Agnese, Paolo, 2022. "Do local innovation systems promote successful equity crowdfunding campaigns? Evidence from Italy," Finance Research Letters, Elsevier, vol. 48(C).
    • Handle: RePEc:eee:finlet:v:48:y:2022:i:c:s1544612322001945
    DOI: 10.1016/j.frl.2022.102932
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    References listed on IDEAS

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    3. Ajay Agrawal & Christian Catalini & Avi Goldfarb, 2015. "Crowdfunding: Geography, Social Networks, and the Timing of Investment Decisions," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 24(2), pages 253-274, June.
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    Cited by:

    1. Bi, Gongbing & Lv, Jiancheng, 2023. "Can an early exit mechanism attract more pledges in equity-based crowdfunding? Evidence from China," Finance Research Letters, Elsevier, vol. 56(C).

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    More about this item

    Keywords

    Equity crowdfunding; Entrepreneurial finance; Italian ventures; Geographical location;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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