Venture Capital, Credit, and FinTech Start-Up Formation: A Cross-Country Study

Dimitrios Kolokas; Tom Vanacker; David Veredas; Shaker A. Zahra

doi:10.1177/1042258720972652

Venture Capital, Credit, and FinTech Start-Up Formation: A Cross-Country Study

Dimitrios Kolokas, Tom Vanacker, David Veredas, Shaker A. Zahra

Strategic Management and Entrepreneurship

Research output: Contribution to journal › Article › peer-review

19 Scopus citations

Abstract

Growing FinTech entrepreneurship is a recent global phenomenon. Drawing on the national innovation systems framework, we examine how countries’ venture capital (VC) and credit markets differently affect FinTech entrepreneurship across countries. We argue that with their established and globally diffused norms and practices, VC investors—but not banks—require a critical mass of FinTech entrepreneurship in a country to more positively influence FinTech entrepreneurship. Moreover, we argue that VC and credit markets are substitutes, especially in countries with more FinTech entrepreneurship. Using quantile regressions on data from 53 countries, we find support for our hypotheses.

Original language	English (US)
Pages (from-to)	1198-1230
Number of pages	33
Journal	Entrepreneurship: Theory and Practice
Volume	46
Issue number	5
DOIs	https://doi.org/10.1177/1042258720972652
State	Published - Sep 2022

Bibliographical note

Funding Information:
We thank the Editor and anonymous ETP reviewers for their valuable comments and constructive feedback. A prior draft of this paper benefited from presentations at the 2019 Babson College Entrepreneurship Research Conference. We further thank seminar participants at the Vlerick Business School for constructive feedback. Dimitrios Kolokas acknowledges funding from the Vlerick Business School Academic Research Fund and Tom Vanacker acknowledges support from the University of Bergamo in the form of a visiting research fellowship.

Funding Information:
We thank the Editor and anonymous ETP reviewers for their valuable comments and constructive feedback. A prior draft of this paper benefited from presentations at the 2019 Babson College Entrepreneurship Research Conference. We further thank seminar participants at the Vlerick Business School for constructive feedback. Dimitrios Kolokas acknowledges funding from the Vlerick Business School Academic Research Fund and Tom Vanacker acknowledges support from the University of Bergamo in the form of a visiting research fellowship. The author(s) received no financial support for the research, authorship, and/or publication of this article.

Publisher Copyright:
© The Author(s) 2020.

Keywords

FinTech entrepreneurship
credit
entrepreneurial finance
national innovation systems
venture capital

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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Venture Capital, Credit, and FinTech Start-Up Formation: A Cross-Country Study

Abstract

Bibliographical note

Keywords

UN SDGs

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