Equity Crowdfunding and Risk Management: The Attitude of Italian Platforms

Abstract

The aim of this paper is to investigate the relation between crowdfunding platforms and risk management in the Italian context, in order to assess the impact for participants. This study can be divided in two main parts. The first part analyses the main characteristics and types of crowdfunding and the current regulatory state for the Italian markets. The second part focuses specifically on risk management theory and presents some specific risks in equity crowdfunding. The findings of this research highlight potential threats and risks for investors and introduce some risk management approaches in crowdfunding platforms. To the authors’ knowledge, this is one of the first study made to deeply understand crowdfunding risk assessment and how platforms can mitigate and manage related risks.