What Do Crowdfunding Platforms Do? A Comparison between Investment-Based Platforms in Europe

Abstract

Despite the growing popularity of investment-based crowdfunding, we know little about what platforms do before the campaign. This is one of the first studies to provide cross-platform evidence on investment-based crowdfunding. First, we describe the regulation and development over time of investment-based crowdfunding markets in France, Italy, Germany and the UK. Second, using a sample of 127 platforms in these countries, we document which services are offered to proponents, before, during and after the campaigns. Finally, our econometric analysis shows that a higher number of post-campaign services offered by the platforms increases the annual number of successful campaigns. Services offered before and during the campaign do not attract more campaigns to the platforms.

Keywords: crowdfunding, entrepreneurial finance, equity crowdfunding, platforms

JEL Classification: G30