Equity Crowdfunding Based on the Blockchain? – A Delphi Study

18 Pages Posted: 21 Jun 2018

See all articles by Felix Heieck

Felix Heieck

Humboldt University of Berlin - School of Business and Economics

Tatiana Ermakova

University of Potsdam

Benjamin Fabian

Humboldt University of Berlin

Stefan Lessmann

School of Business and Economics, Humboldt-University of Berlin

Date Written: June 18, 2018

Abstract

Purpose: Decentralized, blockchain-based equity crowdfunding has potential to close the equity-funding gap faced by startups. The present paper investigates the driving forces of equity crowdfunding and the impact of the blockchain.

Design: In a two-round, expert-based Delphi survey, ten market-driving forces within equity crowdfunding are identified and ranked according to how they influence equity crowdfunding, and in turn, how they are influenced by blockchain technology.

Findings: Savings and financial benefits, facilitation of the financing process, satisfaction of intrinsic and social needs, outreach of projects and products, costs from equity funding, and financial provision were found to have a positive effect, whereas risks from equity crowdfunding, educational gap, investor protection, and monitoring problems and asymmetric information were found to have a negative impact on equity funding.

Research limitations: Any Delphi study depends on the selection and interactive votings of experts.

Practical implications: Experts assessed that the blockchain has a positive influence on all of those forces, also to a certain extent counteracting negative effects. This indicates that Equity Crowdfunding Based on the Blockchain can be viable approach for financing startups if the counteracting effects are sufficiently mitigated.

Originality: Blockchain-based equity crowdfunding has the potential of becoming disruptive.

Keywords: Blockchain, Crowdfunding, Equity, Bitcoin

Suggested Citation

Heieck, Felix and Ermakova, Tatiana and Fabian, Benjamin and Lessmann, Stefan, Equity Crowdfunding Based on the Blockchain? – A Delphi Study (June 18, 2018). Available at SSRN: https://ssrn.com/abstract=3198083 or http://dx.doi.org/10.2139/ssrn.3198083

Felix Heieck

Humboldt University of Berlin - School of Business and Economics ( email )

Spandauer Str. 1
Berlin, D-10099
Germany

Tatiana Ermakova

University of Potsdam ( email )

August-Bebel Strasse 89
Potsdam, 14482
Germany

Benjamin Fabian (Contact Author)

Humboldt University of Berlin ( email )

Unter den Linden 6
Berlin, AK Berlin 10099
Germany

Stefan Lessmann

School of Business and Economics, Humboldt-University of Berlin ( email )

Unter den Linden 6
Berlin, Berlin 10099
Germany

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