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How New Is Crowdfunding? The Venture Capital Evolution without Revolution – Discourse on Risk Capital Themes and their Relevance to Poland (Jak nowe jest zjawisko finansowana spolecznosciowego? Ewolucja kapitalu wysokiego ryzyka bez rewolucji – rozwazania o zagadnieniach kapitalu podwyzszonego ryzyka i ich znaczeniu dla Polski)

Author

Listed:
  • Denis Frydrych

    () (University of Edinburgh Business School)

  • Tony Kinder

    () (University of Edinburgh Business School)

Abstract

This conceptual paper discourses the emergence and development of crowdfunding as a step of the broader risk capital evolution. In doing so, we call for a more careful discussion about whether crowdfunding is the next big thing in risk capital mechanisms or a continuity of risk capital instruments, which matches technological regime changes and aligns to economic and social development. Based on a historical overview of types of funding, we elaborate that the risk capital market follows an evolutionary rather than revolutionary progression, where crowdfunding developed as a continuity of business angel, venture capital and microfinance mechanisms. This paper also provides policy implications by discoursing the risk capital evolution and highlights the importance of diversification in risk capital institutions to drive entrepreneurial activity.

Suggested Citation

  • Denis Frydrych & Tony Kinder, 2015. "How New Is Crowdfunding? The Venture Capital Evolution without Revolution – Discourse on Risk Capital Themes and their Relevance to Poland (Jak nowe jest zjawisko finansowana spolecznosciowego? Ewoluc," Problemy Zarzadzania, University of Warsaw, Faculty of Management, vol. 13(56), pages 177-194.
  • Handle: RePEc:sgm:pzwzuw:v:13:i:56:y:2015:p:177-194
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    crowdfunding; risk capital; venture capital; entrepreneurship;

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors

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