Forecasting success in equity crowdfunding

Ralcheva, Aleksandrina; Roosenboom, Peter

doi:10.1007/s11187-019-00144-x

Cited by 104 publications

(69 citation statements)

References 39 publications

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“…In this sense, EC has established itself as an unconventional financing mechanism compared to traditional equity funding sources and as a popular financing choice for innovative start-up businesses. EC offers a new marketplace for entrepreneurs to draw upon their network of friends, family, and existing shareholders for raising external funds, while also providing a way to raise additional financing from a large pool of individual investors in exchange for an equity stake in the firm (Ralcheva and Roosenboom, 2019 (6/02/2020). In particular, Consob resolutions no.…”

Section: Equity Crowdfundingmentioning

confidence: 99%

https://www.puntoorginternationaljournal.org/index.php/PIJ/article/view/90

Battisti

Graziano

Limbu

et al. 2021

pIJ

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Thanks to fundraising from small investors, principally through social media and online forums, equity crowdfunding (EC) is emerging as an important new financing mechanism for new ventures. However, the literature about equity crowdfunding and social media is still scarce, and no studies have jointly investigated these topics in Italy. As a result, this study aims at investigating, through an exploratory quantitative research approach based on social network analysis (SNA) methodology, the role that equity crowdfunding platforms have on social media, specifically on Twitter. The results of our study indicate that higher numbers of tweets and users spoke about equity crowdfunding following the introduction of Consob Regulation no. 20264 (17/01/2018) on equity crowdfunding and the growth of the use of this instrument in the first quarter of 2019. The study contributes to the literature on crowdfunding and social networks, shedding light on specific aspects typical of an equity model.

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Section: Equity Crowdfundingmentioning

confidence: 99%

https://www.puntoorginternationaljournal.org/index.php/PIJ/article/view/90

Battisti

Graziano

Limbu

et al. 2021

pIJ

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“…According to Cumming and Zhang (2017), after successful applications, the crowdfunding platform will ask companies to perform due diligence efforts, including background checks, credit checks, account monitoring, legal cross-checks, site visits, and third-party proof. These efforts not only positively impact funding success but also help to increase the total amount of capital raised (Ralcheva & Roosenboom, 2019). Project owners spend weeks building their project pages, shooting their videos, and brainstorming what rewards to offer backers (Kickstarter, n.d.-a).…”

Section: Literature Review 1crowdfunding Platform Success From Funded Campaignsmentioning

confidence: 99%

Forecasting Crowdfunding Platform Revenues Using Arima Model

Venslavienė

Stankevičienė

2021

International Scientific Conference „Contemporary Issues in Business, Management and Economics Engineering"

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Purpose – In recent years, crowdfunding platforms have become very popular as intermediaries between fundraisers and funders. However, various campaigns published on the platform might be of bad quality or fraudulent, so the crowdfunding platform must be very careful when choosing the right ones. Also, the proper selection depends on the profits of a crowdfunding platform. In most cases, crowdfunding platforms mainly earn money from transaction and administration fees from successful campaigns on their platforms. While it is very hard to select successful cam-paigns, it is possible to analyse already published campaigns and forecast future revenues of crowdfunding platforms. And based on this, to select new projects which might be successful too. The aim of this work is to develop a model to forecast the revenues of crowdfunding platforms. Research methodology – In this research, comparative and statistical analysis will be used, data structuring, modelling and forecasting, performed with the ARIMA model. Findings – Main findings of this research present the three most successful campaign categories from the Kickstarter platform that receives the highest funding. Fees were calculated from those three campaign categories, and revenues for the platform were forecasted using the ARIMA model. Research limitations – Main limitations are that there were used data from a very short period of time. For better results accuracy, a longer period is needed. Practical implications – this research might be of practical use since the forecasts show that the revenues will continue to grow from the successful campaign categories. Consequently, investors should continue to support technology, games and design categories the most. At the same time, crowdfunding platforms should give more attention to these categories when choosing new projects to launch on the platform.

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“…Despite such a rapid development of the phenomenon, the current academic debate on equity crowdfunding is still in its infancy and leaves ample room for further research (Mochkabadi and Volkmann, 2020). Most of the contributions explore the determinants of the success of equity crowdfunding campaigns and the amount of money raised (Ralcheva and Roosenboom, 2019). Correlations are found with the characteristics of the board of the issuing company, in terms of education and social capital (Ahlers et al, 2015;Barbi and Mattioli, 2019), gender issues (Malaga et al, 2018), age (Borello et al, 2019), the fraction of equity capital retained by the founders (Vismara, 2016), the pledges accumulated in the first week of the campaign (Vulkan et al, 2015), updates posted by the issuing company during the campaign (Block et al, 2018).…”

Section: Review Of the Related Literaturementioning

confidence: 99%

Elective affinities: exploring the matching between entrepreneurs and investors in equity crowdfunding

Giudici

Guerini

Rossi‐Lamastra

2020

BJM

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PurposeThe authors investigate whether matchings in equity crowdfunding are more likely to happen if homophily exists between investors and investees. They focus on gender, age and geographical proximity as crucial dimensions of similarity among individuals and thus of homophily. Furthermore, they investigate whether the effect of homophily depends on the risk of opportunism, which investors allegedly attribute to proponents basing on their area of residence.Design/methodology/approachThe authors analyze a hand-collected database of 13 equity crowdfunding campaigns launched by Italian innovative start-ups from January 2013 to June 2016, which includes information about 384 equity crowdfunding investments carried out by 361 different investors.FindingsThe authors find a significant effect of geographical proximity and age similarity in explaining the probability that an investor finances a campaign. Moreover, these effects are particularly relevant if the proponent is located in areas characterized by a high risk of opportunistic behavior. Interestingly enough, they do not detect any significant effect related to gender.Originality/valueIn this paper, the authors have the unique opportunity to analyze a whole market (the Italian market) during three years, from inception (2013–2016), and to collect the identities of the investors in all successful campaigns.

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Forecasting success in equity crowdfunding

Cited by 104 publications

References 39 publications

https://www.puntoorginternationaljournal.org/index.php/PIJ/article/view/90

https://www.puntoorginternationaljournal.org/index.php/PIJ/article/view/90

Forecasting Crowdfunding Platform Revenues Using Arima Model

Elective affinities: exploring the matching between entrepreneurs and investors in equity crowdfunding

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