What Do Crowd Equity Investors Do? Exploring Postinvestment Activities in Equity Crowd Funding

Garaus, Christian; Izdebski, Nadine; Lettl, Christopher

doi:10.1109/tem.2020.3041073

Cited by 6 publications

(1 citation statement)

References 58 publications

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“…The investors of equity financing may encounter certain difficulties, other than default (Hoegen et al, 2018). They can find out that there is no lucrative secondary market for their shares (Garaus, et al, 2020). As a result, they might find themselves liquidating them at a significant loss, or of diluting their stock value.…”

Section: Investments In Crowd Funding Productsmentioning

confidence: 99%

Crowdfunding small businesses and startups: a systematic review, an appraisal of theoretical insights and future research directions

Camilleri

Bresciani

2022

EJIM

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PurposeThis contribution aims to evaluate key theoretical bases that were used in previous research, to investigate the use of crowdfunding platforms by small businesses and startups. It presents the findings from a systematic review to better explain the pros and cons of utilizing these disruptive technologies for crowdsourcing and/or crowd-investing purposes.Design/methodology/approachThe researchers adopt the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) methodical protocol to search, screen, extract and scrutinize seventy-two (72) articles that were indexed in both Scopus and Web of Science. They examine their research questions, describe their methodologies. Afterwards, they synthesize the findings from previous literature, outline implications and discuss about future research avenues.FindingsA thorough review of the relevant literature suggests that there are opportunities as well as challenges for project initiators as well as for crowd-investors, if they are considering equity crowdfunding, peer-to-peer (P2P) lending and rewards-based crowdfunding platforms, among others, to raise awareness about their projects and to access finance from crowd-investors.Research limitations/implicationsFurther research is required on this timely topic. There are a number of theories relating to technology adoption and/or innovation management, strategic management, accounting and financial reporting, and normative/business ethics, among other research areas, that can be utilized as theoretical bases, to explore this topic.Practical implicationsCrowd-investors are striving in their endeavors to find a trade-off between risks and rewards associated with crowd-financing.Originality/valueCurrently, there are few systematic reviews and conceptual articles focused on the crowdfunding of small businesses and startups. Hence this contribution closes this gap in the academic literature. Moreover, it links the extant theory to practice. It clarifies that the resource-based view theory of the firm, the theory of planned behavior, the diffusion of innovations theory as well as the signaling theory, among other conceptual frameworks, can be used to investigate different facets of crowdsourcing and crowd-investing.

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Section: Investments In Crowd Funding Productsmentioning

confidence: 99%

Crowdfunding small businesses and startups: a systematic review, an appraisal of theoretical insights and future research directions

Camilleri

Bresciani

2022

EJIM

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Blockchain-Enabled Decentralized Crowdfunding Framework for Green Energy Projects

Naik,

Pradhan,

Singh

et al. 2024

Lecture Notes in Electrical Engineering

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What do we know about the choices of entrepreneurs before the equity crowdfunding campaign?

Correia,

Sousa,

Brandão

2024

Small Bus Econ

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This literature survey focuses on the pre-investment phase of equity crowdfunding, encompassing three key areas: (i) a comparative analysis of equity crowdfunding (ECF) in relation to traditional sources of entrepreneurial funding, such as venture capital and business angels; (ii) a discussion on why and when entrepreneurs prefer ECF; and (iii) an in-depth examination of the diverse models of ECF platforms. This paper is relevant for both practice and research. It can help entrepreneurs to identify under what circumstances ECF might be preferable to traditional sources of start-up funding and which platform model best suits their needs. It is also relevant for research because, besides providing an organized summary of the literature on this new way of financing start-ups, it also identifies some inconsistencies and gaps in the existing literature, providing some clues for further investigations.

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What Do Crowd Equity Investors Do? Exploring Postinvestment Activities in Equity Crowd Funding

Cited by 6 publications

References 58 publications

Crowdfunding small businesses and startups: a systematic review, an appraisal of theoretical insights and future research directions

Crowdfunding small businesses and startups: a systematic review, an appraisal of theoretical insights and future research directions

Blockchain-Enabled Decentralized Crowdfunding Framework for Green Energy Projects

What do we know about the choices of entrepreneurs before the equity crowdfunding campaign?

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