“All that glitters is not gold!”: The (Unexplored) Determinants of Equity Crowdfunding

Camilla Civardi, Andrea Moro () and Joakim Winborg
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Camilla Civardi: Lund University
Andrea Moro: Cranfield University
Joakim Winborg: Lund University

Small Business Economics, 2024, vol. 63, issue 1, No 11, 299-324

Abstract: Abstract Drawing from the rich literature in behavioural finance and extensive analysis of forum data from a UK equity crowdfunding platform, we present a comprehensive framework that delineates the investment decision-making process of equity crowdfunders. Our framework captures the utilitarian, emotional, and expressive investment motives that drive crowdfunders, their behaviours and actions during and after the campaign, as well as the challenges they encounter in fulfilling their investment goals. Our work highlights the crucial need to explore the extent to which entrepreneurs and crowdfunding platforms cater to the diverse investment motives and expectations of the crowd. We offer practical insights to entrepreneurs and platforms on how they can better align their strategies with the expectations and needs of equity crowdfunders.

Keywords: Equity crowdfunding; Investment motives; Investment behaviour; Behavioural finance; Start-up; Shareholder activism; Exit (search for similar items in EconPapers)
JEL-codes: D26 G41 L26 M13 (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s11187-023-00813-y

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