A research note on entrepreneurs’ financial commitment and crowdfunding success

Abstract

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Success drivers of online equity crowdfunding campaigns

“…First, despite the recent surge in equity crowdfunding literature, the field is still in its early stages and can therefore benefit from findings from adjacent fields. Indeed, much early equity crowdfunding research has built on findings from business angel and venture capital research (Bretschneider et al, 2014;Cholakova and Clarysse, 2015;Löher et al, 2018;Piva and Rossi-Lamastra, 2018;Venturelli et al, 2018). Similarly, several hypotheses in the research papers of this dissertation are built utilizing findings from these adjacent sources of early-stage equity financing.…”

“…While results regarding equity retention are somewhat mixed (Block et al, 2018b), research does appear to indicate that retaining a larger portion of equity with the entrepreneurs is related to success either positively (Ahlers et al, 2015;Vismara, 2016) or in a weakly positive or insignificant (Ralcheva and Roosenboom, 2016) manner. Similarly, the amount of financial commitment the entrepreneurs have made in the venture prior to the campaign is positively related to funding success (Löher et al, 2018).…”

Uncovering trust signals in equity crowdfunding: A systematic literature review

“…For instance, finance-based studies examine dual-class ECF models' success (Cumming et al, 2019), the relationship between medical crowdfunding and personal bankruptcy (Burtch and Chan, 2019), shareholder structure and venture performance (Walthoff-Borm et al, 2018), the relationship between human capital of the entrepreneur (Piva and Rossi-Lamastra (2018), the gender of the founder (Malaga et al, 2018) or financial commitment (Löher et al, 2018).…”

The role of geographical clusters in the success of reward-based crowdfunding campaigns

“…Other works have explored the behaviour of the backers, that is, the contributors of the crowdfunding campaigns (Agrawal et al, 2015; Burtch et al, 2013; Cholakova and Clarysse, 2015; Kuppuswamy and Bayus, 2015; Mollick and Nanda, 2016; Ordanini et al, 2011), as well as the role of the entrepreneurs on the crowdfunding success. Löher et al (2018) investigate the role of the entrepreneurs’ financial commitment. Bernardino and Santos (2016) study the role played by social entrepreneurs’ personality traits on the choice between the traditional donation model and social crowdfunding to finance social projects.…”