Unsuccessful Equity Crowdfunding Offerings and the Persistence in Equity Fundraising of Family Business Start-Ups

Alice Rossi, Tom Vanacker and Silvio Vismara

Entrepreneurship Theory and Practice, 2023, vol. 47, issue 4, 1327-1355

Abstract: Little is known about what happens after an un successful equity crowdfunding campaign. Taking a socioemotional wealth perspective, we hypothesize that family business start-ups are more likely to eventually still raise equity financing relative to nonfamily business start-ups. Moreover, while family business start-ups are initially less likely to provide voting rights, we hypothesize that they are more likely to offer shares with voting rights after an unsuccessful campaign. Using data on the UK equity crowdfunding market, we find support for our hypotheses. This study adds novel insights into the nexus between equity crowdfunding and family business literature.

Keywords: equity crowdfunding; entrepreneurial finance; corporate governance; voting rights; family business start-ups (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:entthe:v:47:y:2023:i:4:p:1327-1355

DOI: 10.1177/10422587221121290

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