Distinguishing characteristics of crowdfunded innovative new ventures: comparative analysis of fundraising sources
Usually appreciated as an alternative, the crowdfunding is becoming an increasing funding source. However, research on the distinctive characteristics of the young innovative business ventures that resort to crowdfunding remains relatively scares and vague. Following Walthoof-Borm, Schwienbacher et Vanacker (2018), our contribution sheds light on these characteristics by comparing 4450 less than 5 years old French innovative ventures regarding their financing sources pooled in three categories: 1) debt and funders initial equity, 2) fundraising from ventures capital and business angels and 3) crowdfunding. Our study provides evidence that crowdfunded innovative new ventures are less effective regarding the turnover, are smaller, have excessive debt level and account for less intangible assets with respect to the set of firms funded by venture capital and business angels. However, only few differences are noticed relative to the set of firms which did not raise funds.