Determinants of Individual Investment Decisions in Investment-Based Crowdfunding

Fabrice Herve, Elodie Manthé (), Aurélie Sannajust () and Armin Schwienbacher
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Elodie Manthé: WiSEED
Aurélie Sannajust: COACTIS - COnception de l'ACTIon en Situation - UL2 - Université Lumière - Lyon 2 - UJM - Université Jean Monnet - Saint-Étienne

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Abstract: We investigate determinants of investment decisions in investment-based (equity and real estate) crowdfunding campaigns, using a novel investment-, investor- and campaign-level database. We find that women invest less in the riskiest investments but more in safer ones. These findings are better explained by differences in risk aversion than differences in overconfidence between men and women. Investors located in an area considered more "sociable" (socially friendly) also invest more, especially if the investor is a woman. Overall, the findings contribute to our understanding of how investment-based crowdfunding can be a viable source of entrepreneurial finance and how entrepreneurs' campaign decisions affect investor participation in this new form of entrepreneurial finance.

Keywords: Crowdfunding; Startup finance; Entrepreneurial finance; Equity Crowdfunding; Investment decision (search for similar items in EconPapers)
Date: 2017-06-28
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Citations: View citations in EconPapers (2)

Published in Second Annual Conference on Alternative Finance, The Cambridge Centre for Alternative Finance with the support of the CME Group Foundation, Jun 2017, Cambridge, United Kingdom

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Related works:
Journal Article: Determinants of individual investment decisions in investment‐based crowdfunding (2019)
Working Paper: Determinants of Individual Investment Decisions in Investment-Based Crowdfunding (2019)
Working Paper: Determinants of Individual Investment Decisions in Investment-Based Crowdfunding (2018)
Working Paper: Determinants of Individual Investment Decisions in Investment-Based Crowdfunding (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-01578576

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