Are you part of the crowd? The role of sex and environmental characteristics for crowdfunding awareness

Vaznyte, Egle; Andries, Petra; Manigart, Sophie

doi:10.1080/00472778.2020.1831808

Cited by 20 publications

(10 citation statements)

References 107 publications

(213 reference statements)

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“…Considering that both the success of crowdfunding offerings and crowdfunding platforms depends on the number of investors, this gap in the literature needs to be addressed. A first attempt to shed light on this important aspect comes from the study by Vaznyte et al (2020). Using a sample of 1042 individuals in Flanders (Belgium), they find that individuals' crowdfunding awareness depends on whether they are male or female, as well as on their socioeconomic environment.…”

Section: Individual Characteristics and Motivation Of Equity Crowdfunding Investorsmentioning

confidence: 99%

Inclusive digital finance: the industry of equity crowdfunding

Butticè

Vismara

2021

J Technol Transf

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Nowadays equity crowdfunding plays an important role in the entrepreneurial finance markets. To better understand the functioning of the industry, it is important to consider the entire equity crowdfunding process and all the actors involved. Equity crowdfunding platforms match indeed the demand of capital from entrepreneurial ventures with the supply of capital by investors. This manuscript is a first step in this direction, by (1) comparing equity crowdfunding with traditional sources of entrepreneurial finance; (2) discussing the potential and the perils of equity crowdfunding for inclusivity and democratization; (3) highlighting the role of visual information in digital finance; and (4) providing first insights on the industrial dynamics in equity crowdfunding. The paper gives researchers and practitioners orientation about recent developments in equity crowdfunding literature and provides relevant research directions.

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Section: Individual Characteristics and Motivation Of Equity Crowdfunding Investorsmentioning

confidence: 99%

Inclusive digital finance: the industry of equity crowdfunding

Butticè

Vismara

2021

J Technol Transf

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“…2 Prior studies indicate that investors with higher financial literacy have a higher capacity to assess investment opportunities (Lusardi, Mitchell, & Curto, 2010;OECD, 2005), and a higher degree of financial literacy increases financial inclusion at a country level (Grohmann, Klühs, & Menkhoff, 2018). According to the study by Vaznyte, Andries, and Manigart (2020), the perceived socioeconomic environment with positive cues about entrepreneurial endeavors contributes to crowdfunding awareness, which is recognized as an important precedent to actual engagement in crowdfunding. However, people with low financial literacy are less likely to accumulate wealth and manage wealth effectively (Hilgert, 2003;Stango & Zinman, 2009).…”

mentioning

confidence: 99%

Financial literacy and security‐based crowdfunding

Meoli

Rossi

Vismara

2021

Corporate Governance

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Research Question/Issue This study investigates the relationship between financial literacy and the survival profile of the security‐based crowdfunding platforms. Security‐based crowdfunding has recently emerged as a novel market that allows small investors to engage directly in financing entrepreneurial ventures. However, a certain level of financial literacy is required to understand and manage these digital finance tools. A better understanding of the impact of financial literacy is, therefore, central to the development of these markets and the achievement of their inclusive potential. Research Findings/Insights Using data of the universe of 432 security‐based crowdfunding platforms in 37 OECD countries from 2007 to 2019, we find higher platforms' survival profiles where the level of financial literacy is high. Financial literacy, however, needs to combine with specific platform characteristics to take full effect, as it matters more to those platforms that deliver voting rights and that provide poorer value‐added services to crowdfunding investors. Theoretical/Academic Implications This study provides empirical support to the role of governance mechanisms at the platform level for differences in the level of financial literacy across countries. As such, it contributes to literature both on financial literacy and corporate governance. Additionally, it extends previous research in crowdfunding to the platform level. Practitioner/Policy Implications This study calls for the attention of policymakers interested in the development of crowdfunding markets. The importance of financial literacy varies with the presence of governance mechanisms and information production at the platform‐level.

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“…However, the presence of an advisor does not affect the number of male investors. This result can be explained by the fact that men seem to be more aware of crowdfunding in general than women (Groza et al , 2020; Vaznyte et al , 2020). We find that financial information has a positive impact on the investors’ number, especially female investors who invest in campaigns with more financial transparency.…”

Section: Resultsmentioning

confidence: 99%

“…The literature has analysed the matching between the characteristics of entrepreneurs and investors in crowdfunding with a specific focus on gender issues. Although women seem to be less aware of crowdfunding in general than men (Groza et al, 2020;Vaznyte et al, 2020), Gafni et al (2021) show that on the leading reward-based crowdfunding platform -Kickstarter almost half of the investors are women (44%) who invest more than 40% in campaigns led by women. Only 23% of the projects in which men invested were led by a woman.…”

Section: Crowdfunding and Female Investorsmentioning

confidence: 99%

Tackling gender bias in equity crowdfunding: an exploratory study of investment behaviour of Latin American investors

Cicchiello

Kazemikhasragh

2022

EBR

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Purpose Belonging to the financial technologies’ companies, equity-based crowdfunding platforms offer investors the opportunity to become shareholders through the purchase of small equity stakes of new innovative ventures. This paper aims to investigate gender-related differences in the behaviour of investors in firms seeking equity financing in Latin America. Design/methodology/approach Using a unique database, with combined information from different equity crowdfunding platforms in Brazil, Chile and Mexico, the authors study the population of 492 projects between 2013 and 2017. To analyse the relationship between investors’ gender-related differences and equity crowdfunding investment, this paper applies Poisson regression. Findings Results suggest that the probability that an investor finances a firm is based on gender bias. Investors prefer firms led by entrepreneurs that are similar to them in terms of gender. Furthermore, the authors find evidence that both female and male investors are risk-averse and are more likely to invest in the equity of firms that are older and offer a higher percentage of equity. However, female investors are associated with firms that are on average older and offer 0.02% more equity. Practical implications These findings have implications for crowdfunding platforms managers when selecting their target companies and policymakers when defining political actions to promote greater use of equity crowdfunding among female entrepreneurs and decrease barriers hindering women’s access to investment. Originality/value Unique in its proposition and data usage, this study sheds light on the relationship between investors and entrepreneurs in the Latin American equity crowdfunding market.

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Are you part of the crowd? The role of sex and environmental characteristics for crowdfunding awareness

Cited by 20 publications

References 107 publications

Inclusive digital finance: the industry of equity crowdfunding

Inclusive digital finance: the industry of equity crowdfunding

Financial literacy and security‐based crowdfunding

Tackling gender bias in equity crowdfunding: an exploratory study of investment behaviour of Latin American investors

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