Service offering and level of activity of equity crowdfunding platforms

Abstract

This article sets out to study the link between the services offered and the level of activity of the 57 platforms, which currently constitute the entire French equity crowdfunding market. All the services offered by these platforms are considered relevant since they contribute to increasing the level of activity in terms of both the number of campaigns and the amounts raised. These services send a signal to the platform’s community and help reduce not only information asymmetries in terms of the adverse selection of entrepreneurs (due diligence and e-voting) and potential investors (co-investment with BAs and VCs, entry ticket), but also moral hazard through governance mechanisms to manage shareholders (holding company and shareholders’ agreement).