Blockchain-based entrepreneurial finance: success determinants of tourism initial coin offerings

This study explores the factors affecting the probability of success of initial coin offerings (ICOs) with a specific focus on the tourism industry. ICOs emerged as a financial technology (FinTech) development and use blockchain technology. As a novel form of crowdfunding, ICOs are public offerings that can be used to raise capital for entrepreneurs and also have the potential to be a new financing method for tourism ventures with financing challenges. Although ICOs can represent a very substantial alternative financing method for today's innovative business models, the phenomenon seems to be poorly understood. With this in mind, this study highlights the importance of blockchain technology and thus ICOs as an alternative financing tool for the tourism industry. In this context, 49 ICOs that ended between 05 July 2017 and 27 January 2021 were analysed by applying the logistic regression analysis method. The results show that the most essential signals of the probability of success of a tourism ICO are human capital, duration, acceptance of Bitcoin as the most popular cryptocurrency, and bonuses offered as an incentive instrument. The findings have useful practical implications for the determinants of ICOs' success for both tourism entrepreneurs and contributors of tourism ICOs.