Equity Crowdfunded Companies in the United Kingdom: What Factors Determine Post-campaign Success?

Company and Securities Law Journal, Vol. 37, No. 6, 2020, pp. 426-434

9 Pages Posted: 27 Aug 2020

See all articles by Steve Kourabas

Steve Kourabas

Monash University - Faculty of Law

Ian Ramsay

Melbourne Law School - University of Melbourne

Mihika Upadhyaya

Melbourne Law School, University of Melbourne

Date Written: March 11, 2020

Abstract

Equity crowdfunding (ECF) is a relatively new phenomenon in the market for equity finance: Australia only introduced a dedicated ECF regulatory framework in 2017. While it is too soon to confidently evaluate the post-fundraising campaign success of companies in Australia that have raised funds through the ECF process, research on the United Kingdom’s (UK) ECF market, the largest in the world, may offer some useful insights into the successes and failures of ECF. The purpose of this research note, therefore, is to consider the research on the post-campaign performance of companies in the UK that have raised funds through ECF to see if this offers any early guidance for the Australian ECF market and regulation. The research note:

(a) reviews and contrasts key aspects of the current UK and Australian ECF regulatory frameworks;

(b) surveys the literature on the post campaign performance of UK ECF companies and analyses what factors may contribute to the success or failure of ECF companies post-campaign; and

(c) concludes with a discussion of whether the UK’s experience offers any lessons for Australia.

Keywords: equity crowdfunding; regulation of equity crowdfunding; success of equity crowdfunding

Suggested Citation

Kourabas, Steve and Ramsay, Ian and Upadhyaya, Mihika, Equity Crowdfunded Companies in the United Kingdom: What Factors Determine Post-campaign Success? (March 11, 2020). Company and Securities Law Journal, Vol. 37, No. 6, 2020, pp. 426-434, Available at SSRN: https://ssrn.com/abstract=3660314 or http://dx.doi.org/10.2139/ssrn.3660314

Steve Kourabas

Monash University - Faculty of Law ( email )

Wellington Road
Clayton, Victoria 3800
Australia

Ian Ramsay (Contact Author)

Melbourne Law School - University of Melbourne ( email )

University Square
185 Pelham Street, Carlton
Victoria, Victoria 3010
Australia
+61 3 8344 5332 (Phone)

HOME PAGE: http://law.unimelb.edu.au/about/staff/ian-ramsay

Mihika Upadhyaya

Melbourne Law School, University of Melbourne

185 Pelham Street
Melbourne, VIC 3010
Australia
3010 (Fax)

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