SMEs and Start‐Ups Financing: From Governmental Support to ICOs and Token Sales

This articles analyses the financial industry landscape following the recent financial crisis and new players and channels of obtaining external financing for start‐ups and SMEs. We show that the government intervention to overcome the credit crunch problems was of limited effect, be it national funds of loan guarantees or regulatory changes on market exchanges to incentivize SMEs to tap the public capital market. We further look at the recent trends in VC industry and analyse the phenomenon of crowdfunding that became a viable alternative to the traditional credit channels. Lastly, we look at the rapidly evolving Financial Technology (Fintech) sector and ICOs as its means of financing.