Democratization Makes Strange Bedfellows: The Legalization of Equity Crowdfunding
40 Pages Posted: 29 Mar 2018
Date Written: March 28, 2018
The digitalization of entrepreneurial finance has paved the way for new disruptive funding models such as platform-based equity crowdfunding. Owing to the interests of several disparate groups, the ensuing discourse leading to the ultimate legalization of equity crowdfunding was a dynamic process involving many different stakeholders, which is a marked change from the closed-door sessions more commonly associated with securities regulations. Based upon our analysis of a unique longitudinal dataset, we propose that digital crowdfunding and entrepreneurial finance, in general, have become a public interest issue, and therefore the opportunities and implications are more notable than previously depicted.
Keywords: Equity crowdfunding, entrepreneurial finance, regulation, public policy
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