Finance disintermediation for climate change mitigation (CLIMFIN)

CLIMFIN aims at assessing whether and how disintermediated finance represents an effective financing mean for startups committed to climate change mitigation (i.e., climate startups). More in detail, CLIMFIN long-term strategic objective is, by responding to the EU call on climate change mitigation and green transition (e.g., European Green Deal), to evaluate the impact of crowdfunding (CF) on climate startups’ performance and their access to different financial equity channels. CLIMFIN also aims at assessing climate startups’ birth rates and impact on the economy at the local, regional and national level, and, therefore, evaluating the role of financial disintermediation on a country’s capacity to favor an effective climate change mitigation strategy. The project focuses on the Italian financial ecosystem and sets the goal to design, develop and maintain an accessible data infrastructure on climate startups financed through CF and private equity (e.g., BAs, VCs), tracking their complete financial history, survival, financial and success performance. Using state-of-the-art econometric, machine learning and spatial analysis methodologies, the data infrastructure will allow researchers to answer to the following research questions: RQ1: Does CF favor the financial performance and growth of climate startups? RQ2: How does the receipt of financing through CF favor the subsequent attraction by climate startups of professional equity funding, e.g., VCs, BAs? Does the disintermediation of finance facilitate the attraction of private investments in climate startups at local, regional and national level? RQ3: How does the flow of funds towards climate startups through CF favor the birth of new climate startups at the local, regional and national level? RQ4: How do local and regional level events caused by climate change influence the disintermediated finance of climate startups? Does climate CF increase in areas most affected by climate change and/or extreme weather events? RQ5: What are the effects of public policies directed towards climate startups (e.g., governmental VC, public grants) on CF and private equity funding of the green sector? How could public policies stimulate private investments towards climate startups? The research team has the expertise and track record needed to meet project objectives. The team has complementary research expertise in the areas of entrepreneurship, finance, CF, climate change, and green-tech companies, as well as methodological skills, both qualitative and quantitative, essential to carry out research. CLIMFIN will advance research on the equity financing of startups with an impact on the economy and society as a whole. Research outputs will offer unique and fresh perspectives for the creation of policies to support the green transition and to stimulate the introduction of innovative technical solutions for climate change mitigation through a strong and capillary dissemination strategy.