A Cross-Platform Analysis of the Equity Crowdfunding Italian Context: The Role of Intellectual Capital

Abstract

Does intellectual property positively affect the success of the equity crowdfunding campaigns? By using a unique dataset of 191 equity crowdfunding campaigns, gathered from the Italian platforms over the period 2014-2018, we answer this question, focusing on the effect of patents on funding success. In particular, patents may serve as signals of the unobservable quality of equity crowdfunding campaigns. Then, following the literature on success factors for crowdfunding, we also analyze the signaling role played towards external investors by the share of equity retained by founders and by the size of their social networks. Our results show that intellectual property (i.e. patents), the amount of equity retained by entrepreneurs and their social capital have a positive and significant impact on funding success and are interpreted as quality signals of crowdfunding campaigns by external investors.

Keywords: Equity crowdfunding, Signaling theory, Intellectual capital, Entrepreneurial finance, Information asymmetries

JEL Classification: D82, G11, G21, G24, G30, G32, L26, M13