Between DeFi and traditional finance: funding opportunities for tech startups [Tra DeFi e finanza tradizionale: le opportunità di finanziamento per startup tecnologiche]

This study examines the relationship between decentralized finance (DeFi), represented by token offerings, and traditional finance. Token offerings are a direct peer-to-peer financing method that allows companies, particularly tech startups, to raise funds in exchange for publicly tradable cryptographic tokens. The analysis is based on 241 companies that issued utility and security tokens between 2017 and 2021. The results indicate that only the amount raised through security tokens increases the likelihood of obtaining subsequent investments from traditional investors. The presence of patents facilitates access to future funding, while no significant evidence emerges regarding the company’s focus on environmental sustainability. These empirical findings suggest that institutional investors perceive the issuance of security tokens as a reputational signal. In contrast, the use of utility tokens appears to serve purposes beyond mere access to new forms of capital.