Equity Crowdfunding: A New Phenomena

18 Pages Posted: 15 Dec 2015

See all articles by Nir Vulkan

Nir Vulkan

University of Oxford - Said Business School

Thomas B. Astebro

HEC Paris - Economics and Decision Sciences

Manuel Fernández Sierra

Universidad de Los Andes; IZA

Date Written: November 2015

Abstract

Crowdfunding has recently become available for entrepreneurs. Most academic studies analyse data from rewards-based (pre-selling) campaigns. In contrast, in this paper we analyse 636 campaigns, encompassing 17,188 investors and 64,831 investments between 2012 and 2015, from one of the leading European equity crowdfunding platforms. We provide descriptive statistics and carry out cross-campaign regression analysis. The descriptive statistics address its size, growth and geographic distributions in the UK. The regressions analyse which factors are associated with the probability of a successful campaign. We find some similarities and some interesting dissimilarities in both descriptives and regression results compared to research on rewards-based crowdfunding. Practically, the data show that equity crowdfunding will likely pose great challenges to VC and business angel financiers in the near future. We discuss some research challenges and opportunities with these kind of data.

Keywords: equity crowdfunding, U.K., campaign success

Suggested Citation

Vulkan, Nir and Astebro, Thomas B. and Fernández Sierra, Manuel, Equity Crowdfunding: A New Phenomena (November 2015). Saïd Business School WP 2015-21. Available at SSRN: https://ssrn.com/abstract=2700236 or http://dx.doi.org/10.2139/ssrn.2700236

Nir Vulkan (Contact Author)

University of Oxford - Said Business School ( email )

Park End Street
Oxford, OX1 1HP
Great Britain
+44 01865 288929, or 288338 (Phone)
+44 01865 288805 (Fax)

HOME PAGE: https://vulkan.worc.ox.ac.uk/

Thomas B. Astebro

HEC Paris - Economics and Decision Sciences ( email )

Jouy-en-Josas Cedex, 78351
France

HOME PAGE: http://www.hec.edu/Faculty-Research/Faculty-Directory/ASTEBRO-Thomas

Manuel Fernández Sierra

Universidad de Los Andes ( email )

Carrera 1a No. 18A-10
Santafe de Bogota, AA4976
Colombia
+57 (1) 339 4949 Ext. 5025 (Phone)

HOME PAGE: http://https://sites.google.com/view/manuelfernandezsierra

IZA ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Register to save articles to
your library

Register

Paper statistics

Downloads
506
Abstract Views
2,522
rank
54,600
PlumX Metrics