Access to Digital Finance: Equity Crowdfunding across Countries and Platforms

Arbeitspapier

Financing entrepreneurship spurs innovation and economic growth. Digital financial platforms that crowdfund equity for entrepreneurs have emerged globally, yet they remain poorly understood. We model equity crowdfunding in terms of the relationship between the number of investors and the amount of money raised per pitch. We examine heterogeneity in the average amount raised per pitch that is associated with differences across three countries and seven platforms. Using a novel dataset of successful fundraising on the most prominent platforms in the UK, Germany, and the USA, we find the underlying relationship between the number of investors and the amount of money raised for entrepreneurs is loglinear, with a coefficient less than one and concave to the origin. We identify significant variation in the average amount invested in each pitch across countries and platforms. Our findings have implications for market actors as well as regulators who set competitive frameworks.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: IZA Discussion Papers ; No. 16679

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Crowd-Based Firms‡ ; Pension Funds; Non-bank Financial Institutions; Financial Instruments; Institutional Investors ; Behavioral Finance: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets‡ ; Entrepreneurship
• Thema: equity crowdfunding ; soft information ; entrepreneurship ; finance ; financial access and inclusion

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Estrin, Saul ; Khavul, Susanna ; Kritikos, Alexander S. ; Löher, Jonas
• Ereignis: Veröffentlichung
• (wer): Institute of Labor Economics (IZA)
• (wo): Bonn
• (wann): 2023

Weitere Informationen

• Handle: http://hdl.handle.net/10419/282806
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ