Innovative start-ups and equity crowdfunding

This paper aims to analyse the development process of innovative start‐ups with special attention to the equity crowdfunding regulations. The main objective of this analysis is to interpret the effects of equity crowdfunding on the development mechanism of innovative start‐ups and compared with other methods of existing loans (for example, the American JOBS Act and the venture capital regulation). The research uses a qualitative method with an exploratory approach. The differential finding of the contribution summarises the main similarities and differences of the financial instruments available to innovative start‐ups, highlighting in the new regulation on equity crowdfunding a sustainable financial instrument, capable of reducing the effects of the problem of informative asymmetries.