Download this Paper Open PDF in Browser

Fintech and the Financing of Entrepreneurs: From Crowdfunding to Marketplace Lending

TILEC Discussion Paper No. 2017-25

ECGI - Law Working Paper No. 369/2017

Lex Research Topics in Corporate Law & Economics Working Paper No. 2017-3

53 Pages Posted: 15 May 2017 Last revised: 7 Oct 2017

Mark Fenwick

Kyushu University - Graduate School of Law

Joseph A. McCahery

Tilburg University - School of Law; European Banking Center (EBC); Tilburg Law and Economics Center (TILEC); European Corporate Governance Institute (ECGI)

Erik P. M. Vermeulen

Tilburg University - Department of Business Law; Philips Lighting - Legal Department; Tilburg Law and Economics Center (TILEC); Kyushu University - Graduate School of Law

Date Written: September 12, 2017

Abstract

For the last decade economists have been preoccupied with the decline in bank financing to small businesses and entrepreneurs. This effort has produced a better understanding of the obstacles to external financing. We examine the market and policy instruments that in some sense encourage more bank lending to SMEs. This leads us to explore the recent surge in Fintech lending that has affected the ability of SMEs and entrepreneurial firms to obtain loans. We consider recent evidence that the growth of alternative online lending has supplied new competition to traditional banks and is beginning to disrupt the traditional of business of lending. Finally, we examine the regulatory responses to Fintech in seventeen jurisdictions. We examine the first time that venture capitalists invest in Fintech companies to determine whether there is a meaningful connection between levels of investment and regulatory choice. Our findings have implications for how regulation is likely to play an important role in the development of Fintech.

Keywords: Banking, Crowdfunding, Entrepreneurship, Fintech, Peer-to-Peer Lending, Platforms, Regulation, Regtech, Regulatory Sandbox, Technology

JEL Classification: G23, G24, G30, K22, L26, L51, O31

Suggested Citation

Fenwick, Mark and McCahery, Joseph A. and Vermeulen, Erik P. M., Fintech and the Financing of Entrepreneurs: From Crowdfunding to Marketplace Lending (September 12, 2017). TILEC Discussion Paper No. 2017-25; ECGI - Law Working Paper No. 369/2017; Lex Research Topics in Corporate Law & Economics Working Paper No. 2017-3. Available at SSRN: https://ssrn.com/abstract=2967891

Mark Fenwick

Kyushu University - Graduate School of Law ( email )

6-19-1 Hakozaki,
Fukuoka
Japan

Joseph McCahery

Tilburg University - School of Law; European Banking Center (EBC) ( email )

Warandelaan 2
Tilburg, 5000 LE
Netherlands
+31-(0)13-466-2306 (Phone)
+31-(0)13-466-2323 (Fax)

Tilburg Law and Economics Center (TILEC)

Warandelaan 2
Tilburg, 5000 LE
Netherlands

European Corporate Governance Institute (ECGI)

c/o ECARES ULB CP 114
B-1050 Brussels
Belgium

HOME PAGE: http://www.ecgi.org

Erik Vermeulen (Contact Author)

Kyushu University - Graduate School of Law ( email )

6-19-1, Hakozaki, Higashiku
Fukuoka, 812-8581
Japan

Tilburg University - Department of Business Law ( email )

Philips Lighting - Legal Department ( email )

Amstelplein 2
Amsterdam
Netherlands

Tilburg Law and Economics Center (TILEC)

Warandelaan 2
Tilburg, 5000 LE
Netherlands

Paper statistics

Downloads
544
Rank
42,573
Abstract Views
1,191