Equity crowdfunding exemptions, industrial structure, and new venture creation

We investigate the impact of equity crowdfunding exemptions on new venture creation. We further explore whether the effect varies across industries with different levels of external finance dependence, and whether this heterogeneity is influenced by regional industrial structures. Empirical evidence shows that, while the average effect of crowdfunding exemptions on new venture entry is not statistically significant, the impact is positive and significant in industries with higher external finance dependence. Moreover, this positive effect is further amplified in regions characterized by greater related variety. Complementary analyses show that the increase in new venture creation does not appear to be accompanied by a decline in entry quality. These findings highlight the importance of firm-level financial constraints and regional industrial context in shaping the effectiveness of crowdfunding policies.