Title: Innovative start-ups and equity crowdfunding

Authors: Rosa Lombardi; Raffaele Trequattrini; Giuseppe Russo

Addresses: Link Campus University, Via Nomentana, 335, Roma, Italy ' Department of Economics and Law, University of Cassino and Southern Lazio, Via S. Angelo, Loc. Folcara, 03043 Cassino (FR), Italy ' Department of Economics and Law, University of Cassino and Southern Lazio, Via S. Angelo, Loc. Folcara, 03043 Cassino (FR), Italy

Abstract: This paper aims to analyse the development process of innovative start-ups with special attention to the equity crowdfunding regulations. The main objective of this analysis is to interpret the effects of equity crowdfunding on the development mechanism of innovative start-ups and compared with other methods of existing loans (for example, the American JOBS Act and the venture capital regulation). The research uses a qualitative method with an exploratory approach. The differential finding of the contribution summarises the main similarities and differences of the financial instruments available to innovative start-ups, highlighting in the new regulation on equity crowdfunding a sustainable financial instrument, capable of reducing the effects of the problem of informative asymmetries.

Keywords: equity crowdfunding; informative asymmetry; funding; innovative start-ups; JOBS Act; venture capital; financial instruments; Consob; crowdfunding regulation.

DOI: 10.1504/IJRAM.2016.074436

International Journal of Risk Assessment and Management, 2016 Vol.19 No.1/2, pp.68 - 83

Received: 19 Feb 2014
Accepted: 19 Jun 2014
Published online: 30 Jan 2016 *

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