Sustainability-Oriented Equity Crowdfunding: The Role of Proponents, Investors, and Sustainable Development

Lorenzo Gai, Carmelo Algeri, Federica Ielasi () and Maria Manganiello
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Lorenzo Gai: Department of Economics and Management, University of Florence, Via delle Pandette 9, 50127 Florence, Italy
Carmelo Algeri: Department of Management, University of Bologna, Via Capo di Lucca 34, 40126 Bologna, Italy
Federica Ielasi: Department of Economics and Management, University of Florence, Via delle Pandette 9, 50127 Florence, Italy
Maria Manganiello: Department of Economics and Management, University of Florence, Via delle Pandette 9, 50127 Florence, Italy

Sustainability, 2025, vol. 17, issue 5, 1-25

Abstract: This study investigates the factors influencing the success of sustainability-oriented equity crowdfunding campaigns by analyzing a dataset of 771 campaigns from Italian platforms between 2014 and 2021. The findings indicate that while projects with a sustainability focus tend to achieve better outcomes, their success is contingent on variables such as the economic sector of the proposing company and investor concerns regarding misleading claims about environmental, social, and governance practices. Notably, professional investors play a critical role in early-stage financing, initiating information cascades that drive broader investor participation. Furthermore, the COVID-19 crisis appears to have heightened investor interest in sustainability, further solidifying equity crowdfunding as a viable financing tool for ventures with environmental and social objectives. By identifying the key factors that drive the success of sustainability-oriented campaigns, this study offers valuable insights for entrepreneurs, investors, and policymakers seeking to enhance the role of alternative finance in promoting sustainable innovation.

Keywords: equity crowdfunding; entrepreneurial finance; sustainability; alternative finance (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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