Factors for success in European crowdinvesting

摘要

This study explores success factors in European crowdinvesting campaigns. Using a unique and hand-collected dataset of 212 crowdinvesting campaigns promoted on three active European crowdinvesting platforms from July 2011 to July 2015, the paper contributes to the literature on crowdinvesting because it is the first cross-country analysis of crowdinvesting, providing a deeper understanding of equity campaign success factors. The paper finds that equity campaigns promoted by early-stage firms, non high-tech firms and domestic firms, and those supported by a business plan or by an update from their founders have a higher probability of being successfully financed. Further, attracting investors that do not seem to be influenced (or distracted) by the reward, along with higher competition, reduce the probability of success. In contrast, the capital raised increases with the age of the firm, suggesting that investors understand that older firms require a greater amount of capital to expand their business. The results have clear implications for all actors involved in crowdinvesting campaigns: firms, investors, and platforms, as well as regulators and policymakers.