Human Capital, Investor Trust, and Equity Crowdfunding

Research in International Business and Finance, Vol. 49, pp. 1-12, 2019

Posted: 14 Feb 2019 Last revised: 6 Aug 2019

See all articles by Massimiliano Barbi

Massimiliano Barbi

University of Bologna - Department of Management

Sara Mattioli

affiliation not provided to SSRN

Date Written: February 4, 2019

Abstract

In equity crowdfunding, human capital is an important signal of a venture’s quality, as early-stage companies are risky and opaque to the market, and the crowd of investors is financially unsophisticated. Using a sample of 521 funded companies between 2011 and September 2017 on the platform Crowdcube, we show that the education, professional experience, and — more mildly — gender of team members materially affect the total capital raised, as well as the number of investors backing the initiative. Other attributes of human capital (such as volunteering experience) are instead ineffective.

Keywords: Crowdcube, Entrepreneurial Finance, Education, Gender Differences

JEL Classification: G32, L26

Suggested Citation

Barbi, Massimiliano and Mattioli, Sara, Human Capital, Investor Trust, and Equity Crowdfunding (February 4, 2019). Research in International Business and Finance, Vol. 49, pp. 1-12, 2019. Available at SSRN: https://ssrn.com/abstract=3328360

Massimiliano Barbi (Contact Author)

University of Bologna - Department of Management ( email )

via Capo di Lucca 34
Bologna, 40126
Italy
+39 051 2098404 (Phone)
+39 051 246411 (Fax)

HOME PAGE: http://www.sites.google.com/site/massimilianobarbifinance/

Sara Mattioli

affiliation not provided to SSRN

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