Human capital, investor trust, and equity crowdfunding

Massimiliano Barbi and Sara Mattioli

Research in International Business and Finance, 2019, vol. 49, issue C, 1-12

Abstract: In equity crowdfunding, human capital is an important signal of a venture’s quality, as early-stage companies are risky and opaque to the market, and the crowd of investors is financially unsophisticated. Using a sample of 521 funded companies between 2011 and September 2017 on the platform Crowdcube, we show that the education, professional experience, and—more mildly—gender of team members materially affect the total capital raised, as well as the number of investors backing the initiative. Other attributes of human capital (such as volunteering experience) are instead ineffective.

Keywords: Crowdcube; Entrepreneurial finance; Education; Gender differences (search for similar items in EconPapers)
JEL-codes: G32 L26 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (23)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:49:y:2019:i:c:p:1-12

DOI: 10.1016/j.ribaf.2019.02.005

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