COVID-19 and entrepreneurial processes in U.S. equity crowdfunding

Douglas Cumming and Robert S. Reardon

No 665, CFS Working Paper Series from Center for Financial Studies (CFS)

Abstract: COVID-19 brought about a shift in entrepreneurial opportunities and in the United States. In this paper, we proxy entrepreneurial processes by examining housing prices in different regions of the United States. Housing prices capture the movement in people, tax dynamics, and behavioral preferences for equity ownership in different regions and over time, all of which were drastically impacted by COVID-19. We examine all U.S. equity crowdfunding offerings starting with the very first offerings in 2016 Q2 until 2021 Q1 based on data from the Securities and Exchange Commission. The data indicate that regional housing prices post-COVID-19 are a strong predictor of the number of equity crowdfunding campaigns and the amount of capital raised. The impact of housing price changes on crowdfunding is more pronounced among more prosperous regions. The housing price effect is robust to numerous controls and consideration of outliers.

Keywords: Equity Crowdfunding; COVID-19; Regional Entrepreneurship (search for similar items in EconPapers)
JEL-codes: G21 G28 G51 (search for similar items in EconPapers)
Date: 2021
New Economics Papers: this item is included in nep-cfn, nep-cwa, nep-ent, nep-pay and nep-ure
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https://www.econstor.eu/bitstream/10419/248400/1/1780149727.pdf (application/pdf)

Related works:
Journal Article: COVID-19 and entrepreneurial processes in US equity crowdfunding (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:cfswop:665

DOI: 10.2139/ssrn.3973119

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