Financing Start-ups: the Complementarity of Crowdfunding and Banking

Abstract

The complementarity of crowdfunding (CF) and banking makes it possible to extend
the area of financial intermediation to many innovative startups that could not have
been created or developed. It is justified within the limits of traditional banking intermediation to finance certain types of risks. In this article we propose to rely on the
theory of financial intermediation and that of the industrial economy to show how
banking and crowdfunding can be considered as institutionally complementary. The
article reviews the theory of financial intermediation by integrating the contributions of the Two-sided Market theory. It shows how crowdfunding platforms digitally
transform exchange relationships between project leaders and investors. This way, it
participates in the understanding of new business models and digitalization processes
in the banking and financial services industry