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Does equity crowdfunding benefit ventures located in high unemployment regions?

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  • Aristogenis Lazos

    (Audencia Business School)

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 equity crowdfunding decreases their likelihood of failure, these ventures are still more likely to fail.

Suggested Citation

  • Aristogenis Lazos, 2025. "Does equity crowdfunding benefit ventures located in high unemployment regions?," Small Business Economics, Springer, vol. 64(2), pages 575-598, February.
    • Handle: RePEc:kap:sbusec:v:64:y:2025:i:2:d:10.1007_s11187-024-00908-0
    DOI: 10.1007/s11187-024-00908-0
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    More about this item

    Keywords

    Equity crowdfunding; Unemployment; Regional; Fintech;
    All these keywords.

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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