Does Equity Crowdfunding Benefit Ventures Located in High Unemployment Regions?

Abstract

This study investigates whether equity crowdfunding is beneficial for ventures located in high unemployment regions. Employing data from 1172 initial offerings conducted in the UK market, the findings of this study reveal that these ventures exhibit superior campaign outcomes. Their offerings are more likely to reach the target and get oversubscribed. They also enjoy a higher number of investors. Results also suggest that although ECF may decrease their likelihood of failure, these ventures are still more likely to fail.

Keywords: equity crowdfunding; unemployment; regional; fintech

JEL Classification: G240, M130