Forecasting success in equity crowdfunding

Aleksandrina Ralcheva () and Peter Roosenboom
Additional contact information
Aleksandrina Ralcheva: Erasmus University
Peter Roosenboom: Erasmus University

Small Business Economics, 2020, vol. 55, issue 1, No 3, 39-56

Abstract: Abstract This paper analyzes a large dataset of 2171 equity crowdfunding campaigns launched between the years 2012 and 2017 on two of the world’s largest platforms Crowdcube and Seedrs. Our data shows that the equity crowdfunding market has matured: more recent campaigns tend to be launched by larger and older companies with better access to external financing. Given the market’s dynamics, we use a rolling three-year window to forecast funding success and develop a simple model based on information that is available at the time of the campaign (e.g., retained equity, external fundraising before the campaign, accelerator attendance, and information about the directors’ team). Our proposed forecasting method can be beneficial to both platforms and entrepreneurs for improving outcomes on the equity crowdfunding market.

Keywords: Equity crowdfunding; Success; Forecasting; Entrepreneurial finance (search for similar items in EconPapers)
JEL-codes: G24 G32 L26 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (24)

Downloads: (external link)
http://link.springer.com/10.1007/s11187-019-00144-x Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:sbusec:v:55:y:2020:i:1:d:10.1007_s11187-019-00144-x

Ordering information: This journal article can be ordered from
http://www.springer. ... 29/journal/11187/PS2

DOI: 10.1007/s11187-019-00144-x

Access Statistics for this article

Small Business Economics is currently edited by Zoltan J. Acs and David B. Audretsch

More articles in Small Business Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().