Birds of a Feather Flock Together: The Inclusive Effect of Similarity Patterns in Equity Crowdfunding

Venturelli, Valeria; Pedrazzoli, Alessia; Gallo, Giovanni

doi:10.3390/su12093539

Cited by 13 publications

(14 citation statements)

References 87 publications

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“…Further research may extend this work by considering investors' motivations to continue to fund overly successful projects, instead of allocating money to other much needed projects. Behavioural determinants pointed out by recent literature (see, for example, gender and ethnic similarity between entrepreneur and investor in Venturelli et al [56]) may also help to explain dynamics of overfunding. It is our interest to delve into this line of research in the future.…”

Section: Discussionmentioning

confidence: 95%

Determinants of Overfunding in Equity Crowdfunding: An Empirical Study in the UK and Spain

2020

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Crowdfunding constitutes one of the financial solutions to achieve the sustainable development goals, by fostering innovation and economic growth. This paper conducts an empirical two-country analysis (the UK and Spain) of characteristics of successful offerings to assess the distribution of overfunding in equity crowdfunding. Unlike previous research, which has usually comprised campaigns posted on single-country portals, our study is based on an international leading platform operating with country-differentiated websites, Crowdcube. Such an approach allows us to identify influential factors which are dependent on country and, simultaneously, to control for those platform-related factors. To focus on the overfunding distribution, a quantile regression methodology is adopted for a total sample of 299 overfunded campaigns from 2015 to 2018. Overall, empirical results show that the effects of key campaign features (equity, voting rights and social capital) are stronger and more significant at the 75th and 90th quantiles for the overfunding level and the number of investors. Furthermore, we find significant differences across countries, which persist along the distributions of overfunding. Yet, interestingly, between-country differences in overfunding level vanish for the technological sector. Our research provides further insights into the relation between equity crowdfunding and sustainable finance.

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Section: Discussionmentioning

confidence: 95%

Determinants of Overfunding in Equity Crowdfunding: An Empirical Study in the UK and Spain

2020

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“…Equity crowdfunding may represent an opportunity for these entrepreneurs to fill their financial gap, by reaching their home-country network. However, the literature has not investigated extensively whether this presumption is confirmed (for two exceptions see Cumming et al, 2020;Venturelli et al, 2020). Future research might shed light on the use of equity crowdfunding by immigrant entrepreneurs.…”

Section: Immigrant Entrepreneursmentioning

confidence: 99%

Inclusive digital finance: the industry of equity crowdfunding

Butticè

Vismara

2021

J Technol Transf

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Nowadays equity crowdfunding plays an important role in the entrepreneurial finance markets. To better understand the functioning of the industry, it is important to consider the entire equity crowdfunding process and all the actors involved. Equity crowdfunding platforms match indeed the demand of capital from entrepreneurial ventures with the supply of capital by investors. This manuscript is a first step in this direction, by (1) comparing equity crowdfunding with traditional sources of entrepreneurial finance; (2) discussing the potential and the perils of equity crowdfunding for inclusivity and democratization; (3) highlighting the role of visual information in digital finance; and (4) providing first insights on the industrial dynamics in equity crowdfunding. The paper gives researchers and practitioners orientation about recent developments in equity crowdfunding literature and provides relevant research directions.

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“…In his paper on homogeneity, Marsden ( 1988 ) discovers that people that have strong social relations are more likely to share similar attributes. Transferring this idea to the crowdfunding context, Venturelli et al ( 2020 ) investigated the effects of ethnic and gender similarities between investors and entrepreneurs and the positive impact on funding in equity-based crowdfunding. Oo et al ( 2019 ) focus on the mediating effect of similarity (in-group favoritism) between entrepreneurs and investors in reward-based crowdfunding.…”

Section: Discussionmentioning

confidence: 99%

Million dollar personality: a systematic literature review on personality in crowdfunding

2021

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Expressed personality traits can play a pivotal role in convincing investors in crowdfunding. Our study answers the research question: What is the current body of knowledge regarding the relationship between personality factors and crowdfunding success and where are knowledge gaps where the literature is silent? In our literature review, we therefore analyze and categorize (1) the results provided by quantitative studies on the relationship between the personality of entrepreneurs and crowdfunding success and (2) the research gaps identified by the authors investigating personality in crowdfunding. We find that studies investigating the entrepreneur's personality, i.e. the Big Five, other baseline personality traits (self-efficacy, innovativeness, locus of control, and need for achievement) and the Dark Triad, find positive relationships between openness and crowdfunding success, while narcissism shows an inverted u-shaped relationship with crowdfunding success across articles. However, the effects of other personality traits on crowdfunding success are largely inconclusive. Further, we identify four main gaps in the literature. First, future studies should examine non-linear relationships between expressed personality traits and crowdfunding success. Second, there is a need for more studies that employ different methods like qualitative or mixed-method approaches. Third, replication studies in similar and different contexts are urgently needed. Fourth, a plurality of personality perspectives would strengthen future research (e.g., investor perspective, third party perspective). To our knowledge this is the first literature review of personality traits in crowdfunding. Our work aims to enrich our understanding of individual-level components in the underexplored alternative finance market.

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Birds of a Feather Flock Together: The Inclusive Effect of Similarity Patterns in Equity Crowdfunding

Cited by 13 publications

References 87 publications

Determinants of Overfunding in Equity Crowdfunding: An Empirical Study in the UK and Spain

Determinants of Overfunding in Equity Crowdfunding: An Empirical Study in the UK and Spain

Inclusive digital finance: the industry of equity crowdfunding

Million dollar personality: a systematic literature review on personality in crowdfunding

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