The blockchain revolution in startup financing: an empirical analysis of initial coin offerings and initial exchange offerings’ drivers of success

Abstract

This thesis examines how blockchain-based fundraising mechanisms like ICOs and IEOs reshape startup finance by offering decentralized access to capital. Analyzing 100 projects from 2019–2025, it identifies key success drivers using regression analysis. Findings show that strong community presence, top-tier investor backing, and compliance measures (e.g., KYC) significantly influence fundraising success. ICOs raise more than IEOs, despite looser oversight, highlighting a trade-off between decentralization and trust. Interaction effects reveal that credibility signals are especially effective in fragmented regions like APAC, and that compliance enhances ICO outcomes, while offering minimal added value in IEOs due to existing exchange-level due diligence.