Start-ups often post updates during equity crowdfunding campaigns. However, little is known about the effects of such updates on crowd participation. We investigate this question by using hand-collected data from 71 funding campaigns and 39,399 investment decisions on two German equity crowdfunding portals. Using a combination of different empirical research techniques, we find that posting an update has a significant positive effect on the number of investments made by the crowd and the investment amount collected by the start-up. This effect does not occur immediately in its entirety; rather, it lags the update by a few days. Furthermore, the effect of updates loses statistical significance with the number of updates posted during a campaign. We also find that an easier language used in updates increases crowd participation, whereas the length of updates has no effects. With respect to the update's content, we find that the positive effect can be attributed to updates about new developments of the start-up such as campaign developments, new funding, business developments, and cooperation projects. Updates on the start-up team, business model, product developments, and promotional campaigns do not have meaningful effects. Our paper contributes to the literature on the effects of information disclosure on equity crowdfunding participation. Furthermore, our results have practical implications for start-ups and their investor communication during equity crowdfunding campaigns.

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Purpose -This study's aim is to investigate the role of investor communication in equity-based crowdfunding. The study explores whether and how investor communication can reduce information asymmetries between investors and new ventures in equity-based crowdfunding, thereby facilitating the crowd's investment decisions. Design/methodology/approach -This paper follows an exploratory qualitative research approach based on semi-structured interviews with 23 market participants in equity-based crowdfunding: 12 investors, 6 new ventures and 5 third parties (mostly platform operators). After analyzing, coding and categorizing the data, this paper developed a theoretical framework and presented it in a set of six propositions. Findings -The results indicate that the venture's overall impression -especially perceived sympathy, openness and trustworthiness -is important to reduce perceived information asymmetries of investors in equity-based crowdfunding. To communicate these soft facts, personal communication seems to be replaced by pseudo-personal communication over the Internet (e.g. videos, investor relations channels and social media). In addition, the communications of third parties (e.g. other crowd investors, professional and experienced investors and other external stakeholders) influence the decision-making process of investors in equity-based crowdfunding. Third-party endorsements reduce the perceived information asymmetries and lower the importance of pseudo-personal communications by the venture. Originality/value -Prior research shows that investor communication reduces information asymmetries between companies and investors. Currently, little is known about the role of investor communication in equity-based crowdfunding. This study focuses on the role of investor communication to reduce the perceived information asymmetries of investors in equity-based crowdfunding.

Crowdfunding has become important in recent years. However, a comprehensive overview of the economic literature on this topic does not exist. This paper provides an overview of the crowdfunding literature, classified by the main actors (capital seekers, capital providers, and intermediaries), and presents important research questions for future research.

Despite the presence of the term 'entrepreneurial role model' (ERM) in the discourse on entrepreneurship, existing empirical evidence on the effects of role models is rather limited. By investigating 86 published journal articles, we provide a structured overview of the academic research on role models' effects on entrepreneurial intentions and behavior. We reveal that prior research focuses particularly on different types of role models (by whom), at which stage of life (when) and in which context the exposure to role models occurs. We use these research areas to structure our review. By expanding the understanding of the current state of ERM research, we reveal research gaps and provide future research recommendations. Our work could help policy makers and educators consider the different types of role models, the sociocultural context and the life cycle stage of the participants in structuring their entrepreneurship education programs.