Sustainable Equity Crowdfunding Projects: Are They A Driving Force to Revitalise Italy After Global Socio-Economic Consequences of The COVID-19?
Research background: The outbreak of COVID-19 has disrupted and shaken all economic and financial sectors. In this scenario, crowdfunding has emerged as a new relevant financing mechanism alongside more traditional funding channels by attracting investors through an internet-based method of fundrais...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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EDP Sciences
2021-01-01
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| Series: | SHS Web of Conferences |
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| Online Access: | https://www.shs-conferences.org/articles/shsconf/pdf/2021/03/shsconf_glob20_01030.pdf |
| _version_ | 1818388479515557888 |
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| author | Manganiello Maria Dragulanescu Irina-Virginia |
| author_facet | Manganiello Maria Dragulanescu Irina-Virginia |
| author_sort | Manganiello Maria |
| collection | DOAJ |
| description | Research background: The outbreak of COVID-19 has disrupted and shaken all economic and financial sectors. In this scenario, crowdfunding has emerged as a new relevant financing mechanism alongside more traditional funding channels by attracting investors through an internet-based method of fundraising to support ventures. In recent years, many crowdfunding platforms, specialized in green projects rose, allowing start-ups to raise funds for their campaigns. The literature on the use of crowdfunding in the sustainable sector is quite limited.
Purpose of the article: We use a hand-collected dataset of 350 equity crowdfunding campaigns, gathered from the Italian platforms over the period January 2016-June 2020, to analyze the impact of COVID-19 outbreak on the success of green equity crowdfunding projects. We also test the greater attractiveness of the projects sustainability-oriented than other types of campaigns and if growth in the number of “green” projects is linked to the increase of local environmental performance.
Methods: We measure the probability of success of pitched projects, both in terms of the total amount raised and the number of investors. We run a negative-binomial-regression for the number of investors and a Tobit-regression for the amount of capital raised.
Findings & Value added: Coherently with our hypotheses, we find that COVID-19 has reduced the probability of success and that campaigns with a sustainability orientation are more likely to reach the funding target because investors give more importance to a sustainable future. Finally, our search provides that the leading countries in environmental performance have a positive effect on the green crowdfunding projects, by aspiring to move toward a sustainable future. |
| first_indexed | 2024-12-14T04:26:30Z |
| format | Article |
| id | doaj.art-376b99b46ed04d4b900f762a549b6462 |
| institution | Directory Open Access Journal |
| issn | 2261-2424 |
| language | English |
| last_indexed | 2024-12-14T04:26:30Z |
| publishDate | 2021-01-01 |
| publisher | EDP Sciences |
| record_format | Article |
| series | SHS Web of Conferences |
| spelling | doaj.art-376b99b46ed04d4b900f762a549b64622022-12-21T23:17:11ZengEDP SciencesSHS Web of Conferences2261-24242021-01-01920103010.1051/shsconf/20219201030shsconf_glob20_01030Sustainable Equity Crowdfunding Projects: Are They A Driving Force to Revitalise Italy After Global Socio-Economic Consequences of The COVID-19?Manganiello Maria0Dragulanescu Irina-Virginia1University of Naples “Parthenope”, Department of Economic and Legal StudiesUniversity of Bucharest, Department of Economic and Administrative SciencesResearch background: The outbreak of COVID-19 has disrupted and shaken all economic and financial sectors. In this scenario, crowdfunding has emerged as a new relevant financing mechanism alongside more traditional funding channels by attracting investors through an internet-based method of fundraising to support ventures. In recent years, many crowdfunding platforms, specialized in green projects rose, allowing start-ups to raise funds for their campaigns. The literature on the use of crowdfunding in the sustainable sector is quite limited. Purpose of the article: We use a hand-collected dataset of 350 equity crowdfunding campaigns, gathered from the Italian platforms over the period January 2016-June 2020, to analyze the impact of COVID-19 outbreak on the success of green equity crowdfunding projects. We also test the greater attractiveness of the projects sustainability-oriented than other types of campaigns and if growth in the number of “green” projects is linked to the increase of local environmental performance. Methods: We measure the probability of success of pitched projects, both in terms of the total amount raised and the number of investors. We run a negative-binomial-regression for the number of investors and a Tobit-regression for the amount of capital raised. Findings & Value added: Coherently with our hypotheses, we find that COVID-19 has reduced the probability of success and that campaigns with a sustainability orientation are more likely to reach the funding target because investors give more importance to a sustainable future. Finally, our search provides that the leading countries in environmental performance have a positive effect on the green crowdfunding projects, by aspiring to move toward a sustainable future.https://www.shs-conferences.org/articles/shsconf/pdf/2021/03/shsconf_glob20_01030.pdfequity crowdfundingentrepreneurial financesignalling theorysustainability |
| spellingShingle | Manganiello Maria Dragulanescu Irina-Virginia Sustainable Equity Crowdfunding Projects: Are They A Driving Force to Revitalise Italy After Global Socio-Economic Consequences of The COVID-19? SHS Web of Conferences equity crowdfunding entrepreneurial finance signalling theory sustainability |
| title | Sustainable Equity Crowdfunding Projects: Are They A Driving Force to Revitalise Italy After Global Socio-Economic Consequences of The COVID-19? |
| title_full | Sustainable Equity Crowdfunding Projects: Are They A Driving Force to Revitalise Italy After Global Socio-Economic Consequences of The COVID-19? |
| title_fullStr | Sustainable Equity Crowdfunding Projects: Are They A Driving Force to Revitalise Italy After Global Socio-Economic Consequences of The COVID-19? |
| title_full_unstemmed | Sustainable Equity Crowdfunding Projects: Are They A Driving Force to Revitalise Italy After Global Socio-Economic Consequences of The COVID-19? |
| title_short | Sustainable Equity Crowdfunding Projects: Are They A Driving Force to Revitalise Italy After Global Socio-Economic Consequences of The COVID-19? |
| title_sort | sustainable equity crowdfunding projects are they a driving force to revitalise italy after global socio economic consequences of the covid 19 |
| topic | equity crowdfunding entrepreneurial finance signalling theory sustainability |
| url | https://www.shs-conferences.org/articles/shsconf/pdf/2021/03/shsconf_glob20_01030.pdf |
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