Be Careful What You Ask For: Fundraising Strategies in Equity Crowdfunding

80 Pages Posted: 6 Sep 2019 Last revised: 14 Sep 2019

See all articles by Thomas F. Hellmann

Thomas F. Hellmann

University of Oxford - Said Business School; University of Oxford - Said Business School

Ilona Mostipan

Analysis Group; University of Oxford, Saïd Business School

Nir Vulkan

University of Oxford - Said Business School

Date Written: August 1, 2019

Abstract

We use equity crowdfunding data to ask how fundraising amounts can be explained by what entrepreneurs ask for, versus what investors want to invest. The analysis exploits unique features of crowdfunding where entrepreneurs not only set investment goals, but also chose when to close their campaigns. More experienced and more educated founder teams ask for more. Their campaigns succeed more often, and they raise more money. Female teams ask for less, are equally successful, yet raise significantly less. They also wait longer before closing campaigns, suggesting they want to raise more than what they originally asked for.

Keywords: Entrepreneurial finance, Equity crowdfunding, Start-ups, Fundraising, Gender

JEL Classification: G20, G24

Suggested Citation

Hellmann, Thomas F. and Mostipan, Ilona and Vulkan, Nir, Be Careful What You Ask For: Fundraising Strategies in Equity Crowdfunding (August 1, 2019). Saïd Business School WP 2019-12; European Corporate Governance Institute – Finance Working Paper No. 629. Available at SSRN: https://ssrn.com/abstract=3448596 or http://dx.doi.org/10.2139/ssrn.3448596

Thomas F. Hellmann (Contact Author)

University of Oxford - Said Business School ( email )

Park End Street
Oxford, OX1 1HP
Great Britain
+44 (0)1865 288937 (Phone)

HOME PAGE: http://www.sbs.ox.ac.uk/community/people/thomas-hellmann

University of Oxford - Said Business School ( email )

Park End Street
Oxford, OX1 1HP
Great Britain
+44 (0)1865 288937 (Phone)

HOME PAGE: http://www.sbs.ox.ac.uk/community/people/thomas-hellmann

Ilona Mostipan

Analysis Group ( email )

San Francisco, CA 94111
United States

University of Oxford, Saïd Business School ( email )

Park End Street
Oxford, OX1 1HP
Great Britain

Nir Vulkan

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/

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