Sustainability in equity crowdfunding

By Silvio Vismara. Technological forecasting & social change, 2019

289 citations recorded by the source corpus.

Existing studies on the relationship between sustainability and crowdfunding are focused on campaigns that provide rewards for backers. Equity crowdfunding is substantially different in terms of motivations to invest as well as in size, horizon, and expectations of the investment. For the first time – using a sample of 345 initial equity offerings in United Kingdom platforms Crowdcube and Seedrs in the period 2014–2015 – this study provides evidence of the attractiveness of sustainability-oriented ventures in equity crowdfunding. Results show that, although sustainability orientation does not increase the chances of success or of engaging professional investors, it attracts a higher number of restricted investors. This evidence is interpreted considering institutional logic, whereas professionals follow a market logic, and restricted investors consider also a community logic.

Subfields: Economics and Econometrics, Management Information Systems, Marketing

View Paper: https://www.semanticscholar.org/paper/47466cc6596578554d2273a2af246c9f8ce0303e

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Citations in the corpus

Motives and profiles of ICO investors (2019, background): “However, there is a parallelism with crowdfunding and its potential to democratize finance in terms of providing financing and investment opportunities (Cumming, Meoli, & Vismara, 2019).”
Investors’ choices between cash and voting rights: Evidence from dual-class equity crowdfunding (2019, unknown): “The direct involvement of a large number of small investors makes Crowdcube particularly suitable for studies in corporate finance (e.g., Cumming et al., 2016; Vismara 2016; 2018; Vulkan et al., 2016).”
The entrepreneurial finance markets of the future: a comparison of crowdfunding and initial coin offerings (2020, background): “Since crowd investors are usually less experienced in evaluating business plans compared with professional investors, the problem of information asymmetry is especially pronounced on equity CF platforms (Vismara 2019).”
Signalling entrepreneurs’ credibility and project quality for crowdfunding success: cases from the Kickstarter and Indiegogo environments (2021, unknown): “For example, recent research in equitybased crowdfunding has distinguished professional/ qualified investors from restricted investors who are less experienced (Signori & Vismara, 2018; Vismara, 2019).”
A systematic literature review of crowdfunding and sustainability: highlighting what really matters (2020, background): “…may be the community logic that restricted investors follow in equity-based crowdfunding: as restricted investors in crowdfunding only acquire a marginal share of the company, not only are they profit-driven but they also pursue community values and a cooperative capitalism approach (Vismara 2019).”