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Crowdinvesting in entrepreneurial projects: Disentangling patterns of investor behavior

Maximilian Goethner (), Sebastian Luettig () and Tobias Regner
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Maximilian Goethner: FSU Jena
Sebastian Luettig: FSU Jena

Authors registered in the RePEc Author Service: Maximilian Göthner ()

No 2018-018, Jena Economic Research Papers from Friedrich-Schiller-University Jena

Abstract: Crowdinvesting emerged recently as an alternative way of funding for start-up projects. Our dataset consists of all pledges made at Companisto, one of the largest crowdinvesting platforms in Europe. Using cluster analysis based on individual investment histories, we find that crowdinvestors differ in their investment strategies and motivations. We can distinguish three types of crowdinvestors that vary in their response to project quality signals of entrepreneurs, project-related information reducing the degree of uncertainty and social influence by fellow investors: Casual Investors, Crowd Enthusiasts, and Sophisticated Investors. We conclude that crowdinvestors are anything but a homogeneous group. Instead, they are motivated by different factors and respond to different signals when making investment decisions.

Keywords: Crowdinvesting; Entrepreneurial finance; New ventures; Cluster analysis; Social influence; Signaling (search for similar items in EconPapers)
JEL-codes: G23 G41 L26 (search for similar items in EconPapers)
Date: 2018-11-07
New Economics Papers: this item is included in nep-cdm, nep-ent, nep-eur, nep-pay, nep-ppm and nep-sbm
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