Helping Startups Grow

Ramanujan, Sujatha

doi:10.1364/opn.29.2.000024

Cited by 1 publication

(2 citation statements)

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“…The Securities and Exchange Commission of Pakistan (SECP) banned a specific ECF in Pakistan in 2017 and advised the general public to refrain from directly investing in startups in the absence of SECP regulations for crowdfunding companies. Without the necessary legal framework in place, these platforms cannot raise funding in Pakistan (Samar, 2018). Recently, considering the importance of such platforms, SECP has been taking various initiatives to develop the regulatory framework of ECF in Pakistan to facilitate fundraising for startups (SECP, 2019).…”

Section: Literature Reviewmentioning

confidence: 99%

“…Specifically, technology startups have limited sources of financing including debt financing and venture capital financing at the early stages of their development. Banks set strict terms and conditions for startups, and it is difficult for startups to secure adequate financing from venture capital at the initial stages (Masood, 2018). Hence, I-ECF is an alternative way out for securing financing for startups and to boost the economy.…”

Section: Literature Reviewmentioning

confidence: 99%

See 1 more Smart Citation

An Empirical Investigation of the Factors Affecting Perceptions of University Students in Pakistan on the Usage of Islamic Equity Crowdfunding

Sarfraz,

Ayub,

Ellahi

2023

IJIF

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Purpose — This paper aims to explore the key motivational factors that influence investors to invest in Islamic equity crowdfunding (I-ECF) platforms. Design/Methodology/Approach — The study is quasi-experimental with a pre-test/post-test design where the respondents, including 350 business and computer studies students from public and private universities in Pakistan, were selected for experimental manipulations, i.e., showing videos. The questionnaire was used to assess the difference in the perceptions of potential investors. Findings — The results support the hypotheses that project innovativeness, return on investment, perceived informativeness, protection policy and a helping attitude positively influence the investors’ willingness to invest in I-ECF. However, risk of investment and third-party seal were proven to play an insignificant role in influencing the investors’ willingness to invest in I-ECF. Originality/Value — I-ECF is an unexplored phenomenon in Pakistan. This study is limited to finding the key factors that influence students’ inclination towards its usage. Future researchers can study it from an entrepreneur’s perspective. Research Limitations — This study is limited to potential investors’ perspectives towards the usage of I-ECF platforms. However, various other research areas need to be explored such as entrepreneurial intentions, usage of the capital market, platform and institution-related issues for the promotion of I-ECF. Practical Implications — This study will have practical implications for young entrepreneurs, regulators and researchers so that they may capitalise and give weightage to key identified factors for the promotion and usage of I-ECF platforms to raise seed money for new businesses. For example, crowdfunding as an alternative method of financing may gain popularity by making hundreds of connections through brand ambassadors. Universities could partner with equity-based crowdfunding (ECF) platforms like StartEngine as their intra-university platforms. Furthermore, the study provides valuable insights to regulatory bodies to assist them in formulating regulations for I-ECF. If startups (e.g., university incubators) get money from students via ECF platforms, ECF will grow into a sustainable model that can contribute to the country’s long-term development by fostering a knowledge economy as a source of wealth.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%