The entrepreneurial finance markets of the future: a comparison of crowdfunding and initial coin offerings

• Published in: Small business economics Vol. 57; no. 2; pp. 865 - 882
• Main Authors: Block, Joern H, Groh, Alexander, Hornuf, Lars, Vanacker, Tom, Vismara, Silvio
• Format: Journal Article
• Language: English
• Published: New York, NY Springer US 01-08-2021; Springer Nature B.V; Springer Verlag
• Subjects: Blockchain; Business administration; Business and Management; Crowdfunding; Economics and Finance; Entrepreneurial finance; Entrepreneurship; Finance; Humanities and Social Sciences; ICOs; Industrial Organization; Initial coin offering; Management; Market segments; Markets; Microeconomics; Small business; SME financing; L26; Crowdfunding; Entrepreneurial finance; Initial coin offering; G30; Blockchain; G24; G23; ICOs; SME financing; Initial Coin Offerings; Initial Token Offerings; Entrepreneurial Finance
• ISSN: 1573-0913; 0921-898X; 1573-0913
• DOI: 10.1007/s11187-020-00330-2

Entrepreneurial finance markets are in a dynamic state. New market niches and players have developed and continue to emerge. The rules of the game and the methods for receiving financial backing have changed in many ways. This editorial and the special issue of Small Business Economics focus on crowdfunding (CF) and initial coin offerings (ICOs), which are two distinct but important entrepreneurial finance market segments of the future. Although the two market segments initially appear to be similar, we identify differences between them. Our comparison focuses on the stakeholders, microstructures, regulatory environments, and development of the markets. We conclude with suggestions for future ICO and CF research.