Does Equity Crowdfunding Benefit Ventures Located in High Unemployment Regions?

This study investigates whether equity crowdfunding is beneficial for the short and long-term performance of young 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 are more likely to raise capital. Their campaigns are more likely to reach the target and get oversubscribed. Results also suggest that although these ventures are more likely to fail in the long run, equity crowdfunding reduces their likelihood of failure