Abstract
Among the new ventures actively seeking funds through equity crowdfunding, only a lucky few seemingly survive the rigorous selection process imposed by equity crowdfunding platforms (ECFPs). With a conjoint experiment involving decision-makers from 50 platforms in 22 countries, this study provides first quantitative evidence regarding how ECFPs actually use quality signals to select new ventures to start fundraising campaigns. The ECFPs interpret signals differently, depending on whether they impose a co-investment requirement or generate revenues from new ventures’ long-term performance. The effectiveness of the signals also is contingent on the applicant’s industry background and the signals’ accessibility in the country where the ECFP operates.
Original language | English |
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Article number | 10422587211011945 |
Pages (from-to) | 1626-1657 |
Number of pages | 32 |
Journal | Entrepreneurship Theory and Practice |
Volume | 46 |
Issue number | 6 |
Early online date | 2 May 2021 |
DOIs | |
Publication status | Published - Nov 2022 |
Keywords
- crowdfunding
- entrepreneurial finance
- equity crowdfunding platforms
- screening
- signaling
- MARKET
- COUNTRIES
- SUCCESS
- PERFORMANCE
- FLEXIBILITY
- WINNERS
- ENTREPRENEURSHIP RESEARCH
- CAPITALISTS
- FOUNDERS
- DECISIONS