Navigating the Start-Up Financing Funding Gap: Comparing Business Angels and Crowdfunding

Stefano Bonini; Vincenzo Capizzi; Francesca Tenca

doi:10.1007/978-3-031-65782-5_6

Navigating the Start-Up Financing Funding Gap: Comparing Business Angels and Crowdfunding

Stefano Bonini, Vincenzo Capizzi, Francesca Tenca

School of Business

University of Eastern Piedmont

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › peer-review

Abstract

This study presents empirical comparisons of fundraising outcomes for entrepreneurial ventures supported by business angels and crowd investors. Utilizing a comprehensive multi-year dataset derived from repeated annual surveys within the business angel (BA) and equity crowdfunding (ECF) markets in Italy, our findings reveal that, despite investing in comparable start-ups, ECF-backed ventures secure lower capital amounts than BA-backed ones. Moreover, ECF-backed start-ups acquire a smaller proportion of capital. These outcomes imply that equity crowdfunding and business angels are not perfect substitutes but rather function as different financial channels for inherently heterogeneous start-ups characterized by distinct funding requirements.

Original language	English
Title of host publication	Leading and Managing in the Digital Era - Shaping the Future of Work and Business Education
Editors	Gregory Prastacos, Nancy Pouloudi
Pages	77-88
Number of pages	12
DOIs	https://doi.org/10.1007/978-3-031-65782-5_6
State	Published - 2024
Event	International Conference on Leading and Managing in the Digital Era, LMDE 2023 - Athens, Greece Duration: 19 Jun 2023 → 20 Jun 2023

Publication series

Name	Lecture Notes in Information Systems and Organisation
Volume	69 LNISO
ISSN (Print)	2195-4968
ISSN (Electronic)	2195-4976

Conference

Conference	International Conference on Leading and Managing in the Digital Era, LMDE 2023
Country/Territory	Greece
City	Athens
Period	19/06/23 → 20/06/23

Access to Document

10.1007/978-3-031-65782-5_6

Cite this

Bonini, S., Capizzi, V., & Tenca, F. (2024). Navigating the Start-Up Financing Funding Gap: Comparing Business Angels and Crowdfunding. In G. Prastacos, & N. Pouloudi (Eds.), Leading and Managing in the Digital Era - Shaping the Future of Work and Business Education (pp. 77-88). (Lecture Notes in Information Systems and Organisation; Vol. 69 LNISO). https://doi.org/10.1007/978-3-031-65782-5_6

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title = "Navigating the Start-Up Financing Funding Gap: Comparing Business Angels and Crowdfunding",

abstract = "This study presents empirical comparisons of fundraising outcomes for entrepreneurial ventures supported by business angels and crowd investors. Utilizing a comprehensive multi-year dataset derived from repeated annual surveys within the business angel (BA) and equity crowdfunding (ECF) markets in Italy, our findings reveal that, despite investing in comparable start-ups, ECF-backed ventures secure lower capital amounts than BA-backed ones. Moreover, ECF-backed start-ups acquire a smaller proportion of capital. These outcomes imply that equity crowdfunding and business angels are not perfect substitutes but rather function as different financial channels for inherently heterogeneous start-ups characterized by distinct funding requirements.",

author = "Stefano Bonini and Vincenzo Capizzi and Francesca Tenca",

note = "Publisher Copyright: {\textcopyright} The Author(s), under exclusive license to Springer Nature Switzerland AG 2024.; International Conference on Leading and Managing in the Digital Era, LMDE 2023 ; Conference date: 19-06-2023 Through 20-06-2023",

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doi = "10.1007/978-3-031-65782-5_6",

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Bonini, S, Capizzi, V & Tenca, F 2024, Navigating the Start-Up Financing Funding Gap: Comparing Business Angels and Crowdfunding. in G Prastacos & N Pouloudi (eds), Leading and Managing in the Digital Era - Shaping the Future of Work and Business Education. Lecture Notes in Information Systems and Organisation, vol. 69 LNISO, pp. 77-88, International Conference on Leading and Managing in the Digital Era, LMDE 2023, Athens, Greece, 19/06/23. https://doi.org/10.1007/978-3-031-65782-5_6

Navigating the Start-Up Financing Funding Gap: Comparing Business Angels and Crowdfunding. / Bonini, Stefano; Capizzi, Vincenzo; Tenca, Francesca.
Leading and Managing in the Digital Era - Shaping the Future of Work and Business Education. ed. / Gregory Prastacos; Nancy Pouloudi. 2024. p. 77-88 (Lecture Notes in Information Systems and Organisation; Vol. 69 LNISO).

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › peer-review

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AB - This study presents empirical comparisons of fundraising outcomes for entrepreneurial ventures supported by business angels and crowd investors. Utilizing a comprehensive multi-year dataset derived from repeated annual surveys within the business angel (BA) and equity crowdfunding (ECF) markets in Italy, our findings reveal that, despite investing in comparable start-ups, ECF-backed ventures secure lower capital amounts than BA-backed ones. Moreover, ECF-backed start-ups acquire a smaller proportion of capital. These outcomes imply that equity crowdfunding and business angels are not perfect substitutes but rather function as different financial channels for inherently heterogeneous start-ups characterized by distinct funding requirements.

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Navigating the Start-Up Financing Funding Gap: Comparing Business Angels and Crowdfunding

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