New Developments in Entrepreneurial Finance

A special issue of Journal of Risk and Financial Management (ISSN 1911-8074). This special issue belongs to the section "Business and Entrepreneurship".

Deadline for manuscript submissions: closed (31 March 2022) | Viewed by 5713

Special Issue Editor

Finance Department, School of Business, University at Albany (SUNY), Albany, NY 12222, USA
Interests: venture capital and private equity; financing of entrepreneurship and innovation; corporate finance; hedge funds, regulation and governance

Special Issue Information

Dear Colleagues,

This special issue focuses on the broad topic of Entrepreneurial Finance and includes novel research on the recent developments in financing for entrepreneurship and innovation.

Both theoretical and empirical articles on venture capital, crowdfunding, angel financing, accelerator and incubator, small business lending, private credit, shadow capital in entrepreneurial financing (such as buyout funds, mutual funds, hedge funds, etc.), private placements in public equity, SPACs, and IPOs are welcome.

Contributions focusing on the impact of the Covid-19 pandemic on entrepreneurial firms, small businesses, and investors globally are encouraged.

Dr. Na Dai
Guest Editor

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Keywords

  • Entrepreneurial Finance
  • Venture Capital
  • Crowdfunding
  • Angel Financing
  • Small Business Lending
  • Private Credit
  • Shadow Capital
  • Private Placements in Public Equity
  • SPACs
  • IPOs

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Published Papers (2 papers)

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Research

18 pages, 1273 KiB  
Article
A Fractal View on Losses Attributable to Scams in the Market for Initial Coin Offerings
by Klaus Grobys, Timothy King and Niranjan Sapkota
J. Risk Financial Manag. 2022, 15(12), 579; https://doi.org/10.3390/jrfm15120579 - 5 Dec 2022
Cited by 3 | Viewed by 2974
Abstract
Analogous to traditional Initial Public Offerings (IPO), Initial Coin Offerings (ICOs) represent an emerging channel through which firms can access external funding using the new evolving digital financial market for tokens. However, while ICOs represent an alternative funding channel for startups, the ICO [...] Read more.
Analogous to traditional Initial Public Offerings (IPO), Initial Coin Offerings (ICOs) represent an emerging channel through which firms can access external funding using the new evolving digital financial market for tokens. However, while ICOs represent an alternative funding channel for startups, the ICO market is essentially unregulated, which creates opportunities for fraud such as ‘ICO scams’. This paper addresses the question as to what the expected losses attributable to scams in the market for ICOs are. Using web scrapping techniques, all ICOs launched between August 2014 and December 2019 were first screened for accusations of fraud, before a novel methodological framework was employed to understand the true costs associated with scams. The findings reveal that 56.80% of ICOs were subject to scams, corresponding to 65.80% of the relevant market capitalization, estimated at USD 15.38 billion. Moreover, it is found that the loss distribution due to scam ICOs is governed by a fractal process. Specifically, the power law exponent for the distribution governing losses due to scam ICOs suggests that the second moment is not defined, rendering the sample mean unstable. Taken together, the results in this paper provide evidence that we have not yet seen the largest loss in the market for ICOs and are supportive of an urgent need for ICO market regulations from governments and regulatory agencies. Full article
(This article belongs to the Special Issue New Developments in Entrepreneurial Finance)
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18 pages, 769 KiB  
Article
People Financing Entrepreneurs within and outside the Family: Pandemic Decline and Resilience in Cultures around the World
by Ahmed Tolba, Ayman Ismail and Thomas Schøtt
J. Risk Financial Manag. 2021, 14(12), 610; https://doi.org/10.3390/jrfm14120610 - 15 Dec 2021
Viewed by 2010
Abstract
People may finance entrepreneurs, often family members. Here, the question is: how has the COVID-19 pandemic affected people’s funding of family-related entrepreneurs and non-family-related entrepreneurs? The pandemic predictably reduced the funding of family-related entrepreneurs and especially the financing of non-family-related entrepreneurs. However, a [...] Read more.
People may finance entrepreneurs, often family members. Here, the question is: how has the COVID-19 pandemic affected people’s funding of family-related entrepreneurs and non-family-related entrepreneurs? The pandemic predictably reduced the funding of family-related entrepreneurs and especially the financing of non-family-related entrepreneurs. However, a culture supportive of family businesses may alleviate the declining funding of family-related entrepreneurs, predictably, while a secular–rational culture supportive of non-family businesses may alleviate the declining financing of non-family-related entrepreneurs. Similar to a field experiment, a globally representative survey was conducted before and after the disruption in 42 countries, interviewing 266,983 adults either before or after the disruption. The individual-level data are combined with national-level data on culture, amenable to hierarchical linear modeling. People’s financing of family-related entrepreneurs and especially of non-family-related entrepreneurs are found to have declined with the COVID-19 pandemic. However, culture provides resilience, in that the declining funding of family-related entrepreneurs was alleviated where the culture supports family businesses, and the declining funding of non-family-related entrepreneurs was alleviated in societies with a secular–rational culture. The findings contribute to contextualizing business angel financing temporally, as embedded in time before and after the COVID-19 pandemic disruption, and societally, as embedded in culture providing resilience. Full article
(This article belongs to the Special Issue New Developments in Entrepreneurial Finance)
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