Abstract: I compare the impact of state and federal return-based crowdfunding regulations on entrepreneurship. I find that both regulations increase business applications in less financially developed states. However, only state-level crowdfunding spurs business formation and job creation and reduces local bias in entrepreneurship. In contrast, federal-level crowdfunding helps established businesses stay afloat but prevents other types of businesses from entering. My findings suggest that while both types of regulations decrease the importance of local financial market development in business initiation, information asymmetry leads to only state-level crowdfunding being effective in boosting new business formation. 

Presentations: University of Michigan Brownbag Seminar (2022), WEFI PhD Workshop (2022), Young Scholars Finance Consortium (2023), FMA 2023 Annual Meeting, AFA 2024 Annual Meeting, FARS 2024 Midyear Meeting

Abstract: Geographical clustering is an essential feature of the venture capital (VC) industry as proximity helps VCs to acquire soft information about early-stage companies and to conduct post-investment activities. However, whether the VC investment model based on in-person interactions is still justified in the age of online communication technologies remains an open question. In this paper, we address this question by using an unexpected interruption in face-to-face meetings during the recent pandemic. We document that VCs respond to this change by breaking their traditional norm: they invest in more distant startups. We find that this evolution goes along with selection criteria and syndication process changes despite some persisting behaviors. Thus, our study helps to understand how VCs revisit their investment model and sheds light on the value of in-person interactions for the VC industry.  

Presentations: Private Capital Symposium at London Business School (2023), 5th Future of Financial Information Conference at HEC Paris (2023), Columbia Private Equity Conference (2023), AFA PhD Student Poster Session (2023), Conference on Remote Work at Stanford University (2022), HEC Paris Finance PhD Workshop (2022), WEFI PhD Workshop (2022), IESE Brownbag Seminar (2022), Imperial College Seminar (2022), SFI-USI Summer School (2022)

Coverage: Private Equity Findings by Coller Capital (2023)

Abstract: Using a hand-collected data set on the Regulation A+ filings, I provide detailed information on the age, size, number of employees, financial statement items, and industrial and geographical distributions of companies that use Regulation A+. Testing the effect of Regulation A+ on the local economy, I find that the amount raised through this method of financing is negatively associated with ensuing unemployment rate. In addition, I investigate whether this new method of financing is substituting or complementing venture capital (VC) financing. The data analysis shows that Regulation A+ facilitates access to financing in regions and industries that could not attract VC-financing ex-ante. Finally, I find evidence consistent with successful Regulation A+ offerings in a region attracting ensuing VC investments through decreasing uncertainty and search cost.

Presentations: University of Michigan Brownbag Seminar (2021), WEFI PhD Workshop (2021)