@inbook{406c7ebd9b284bf8a063bbe7921cbb7f,
title = "Crowdfunding and bank stress",
abstract = "Bank instability may induce borrowers to use crowdfunding as a source of external finance. A range of stress indicators help identify banks with potential credit supply constraints, which then can be linked to a unique, manually constructed sample of 157 new ventures seeking equity crowdfunding, for comparison with 200 ventures that do not use crowdfunding. The sample comprises projects from all major German equity crowdfunding platforms since 2011, augmented with controls for venture, manager, and bank characteristics. Crowdfunding is significantly more likely for new ventures that interact with stressed banks. Innovative funding sources are thus particularly relevant in times of stress among conventional financiers. But crowdfunded ventures are generally also more opaque and risky than new ventures that do not use crowdfunding.",
keywords = "Bank stress, Credit crunch, Crowdfunding, Funding alternative, New ventures",
author = "D. Blaseg and Michael Koetter",
note = "Funding Information: The scholarship variable indicated whether the venture received support from the Federal Ministry of Economics and Energy (“Bundesministerium f{\"u}r Wirtschaft und Energie”, BMWi), in the form of an EXIST founder scholarship, a nationwide funding program, which supports innovative businesses that started in universities and research institutions during their early phases, such that it could be interpreted as a signal of quality. Approximately 20 \% of the ventures in the sample received this kind of support, with similar distributions across ventures that used and did not use crowdfunding. Publisher Copyright: {\textcopyright} Springer International Publishing Switzerland 2016.",
year = "2016",
doi = "10.1007/978-3-319-42448-4\_3",
language = "English",
series = "New Economic Windows",
publisher = "Springer",
pages = "17--54",
booktitle = "Banking Beyond Banks and Money",
address = "United States",
}