Determinants of FinTech Equity Funding Flows: Evidence from a Global Perspective

Uttamgolder, S.; Abedin, M.Z.; Adu, D.A.

Abstract

This study explores the factors affecting FinTech (Financial technology startups) equity financing and deals. Traditional and alternative financing are currently progressing together; however, alternative financing remains underexplored. Using a panel data on 57 countries from 2010 to 2020 and one-step Difference Generalized Method of Moments (Diff-GMM) regressions, we show that, at the global level, Gross Domestic Product (GDP), domestic credit to the private sector, regulations, innovations, globalization, stock market return, Information Technology (ICT) goods export, and internet users influence FinTech equity funding, while in FinTech deals, except GDP, regulations, and globalization, all other factors have a substantial effect. Nevertheless, our categorical findings slightly differ from the global context. Our study emphasizes the need for rapid development of communication technology and increased accessibility to mobile internet services for users. Moreover, authorities should strike a balance between imposing regulations and facilitating FinTech equity funding growth, while innovations should prioritize user-friendliness, affordability, and commercial viability.

Citation

Uttamgolder, S., Abedin, M., & Adu, D. (in press). Determinants of FinTech Equity Funding Flows: Evidence from a Global Perspective. International Journal of Finance and Economics,

• Journal Article Type: Article
• Acceptance Date: Oct 31, 2024
• Deposit Date: Nov 21, 2024
• Journal: International Journal of Finance and Economics
• Print ISSN: 1076-9307
• Electronic ISSN: 1099-1158
• Publisher: Wiley
• Peer Reviewed: Peer Reviewed
• Keywords: Financial technology; Equity financing; FinTech deal; Regulation; Innovation; 17 Globalization 18
• Public URL: https://nottingham-repository.worktribe.com/output/42214300