An exploratory analysis of Title II equity crowdfunding success

Success Factors in Title III Equity Crowdfunding in the United States

“…The results of our study indicate that while Title III had a slower start compared to Title II [26], legislation has been adopted in practice and Title III equity crowdfunding platforms are gaining traction.…”

“…However, in a subsequent study, the authors found that angel investors often pool their resources and form syndicates, wherein a well-known investor takes the lead role in performing the due diligence on potential investments, thus providing a solution to the information asymmetry challenges [2]. Focusing on Title II equity crowdfunding platforms, Mamonov et al [26] showed that real estate projects are particularly successful in raising funding from the accredited investors under Title II. Table 2 summarizes the insights of empirical studies that examined equity crowdfunding in different geographies.…”

“…Mamonov et al, (2017) [26] Title II equity crowdfunding platforms Real estate investments are disproportionately more successful in Title II crowdfunding.…”

“…Accredited investors are individuals who either have income exceeding $200,000 per year or have at least $1 million in assets, excluding the primary residence [39]. Preliminary research on Title II equity crowdfunding shows that over $1.4 billion have been committed by accredited investors to Title II projects [26], however much less is known about Title III.…”

Digital Entrepreneurship in Two-sided Markets. Insights from Real Estate Crowdfunding Platforms.

“…We also make a contribution to the broader crowdfunding literature. While real estate crowdfunding has gained momentum in practice [28], there has been relatively little research in this domain [50]. Our study offers the foundation for further research, by defining the key agents in this area of practice (investors, sponsors and platforms), documenting the diversity of real estate crowdfunding platform types and outlining different governance structures that emerge (direct investments, REITs and listing platforms).…”