New Ways of Financing Innovation

This research project examines the role of crowdfunding to finance companies in early stages of development and its impact on the generation of innovations by these companies.

The program counts with the generous support of the Comunidad de Madrid and the EU's European Social Fund (Grant S2015/HUM-3353 EARLYFIN-CM).

We tackle this issue through a multidisciplinary approach that connects crowdfunding with other forms of early-stage financing, especially venture capital. We also examine the relation between crowfunding and corporate governance and the possibility of using the crowdfunding as a mechanism to retain skilled workers with firm-specific human capital.

Research Objectives

An analysis of the relationship between venture capital and crowdfunding. Are they complementary or substitute forms to finance early-stage innovative firms? As part of this analysis we will propose recommendations on the most efficient way of channeling funds to growth companies in their early stages.

A study of the relationship between crowfunding and corporate governance. To the extent that crowdfunding encourages the participation of stakeholders in the financing of a company, the corporate governance of the financed firms will be affected. An extension of this line is the study of social crowdfunding and its impact on both the corporate governance and social responsibility policy of the companies receiving crowdfunding. Moreover, we also analyze the opposite direction of causality, namely what are the most appropriate forms of governance to stimulate crowdfunding.

An analysis of the kinds of innovations that are generated with crowdfunding: user innovations; radical innovations; incremental innovations.

A characterization of the pattern and type of participants in crowdfunding platforms. This will allow us to identify the most active stakeholders in this type of financing. In this context, we consider whether firms’ own employees provide funds through crowdfunding. Such workers will eventually receive in return a stake in the enterprise, which will favor their retention. In this setting, these workers may be more likely to provide the sort of intangibles that favor innovations.

The organization of crowdfuning through the online stakeholder engagement. How to measure the impact and influence of networks in the crowdfunding?


  •    CAR3FIN (coord.): Finance Group of the Universidad Carlos III de Madrid
  •    UAMFIN: Finance Group of the Economics and Business Faculty of Universidad Autonoma de Madrid
  •    CAR3RH: Human Resources Group of the Universidad Carlos III de Madrid
  • Associated Groups
  • Vivero_UC3M: Business Incubator of the Universidad Carlos III de Madrid
  • UAB-CREO: Center for Research on the Economics of Organisations of the Universitat Autònoma de Barcelona

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