The interaction of equity crowdfunding platforms and ventures: an analysis of the preselection process

Löher, Jonas

doi:10.1080/13691066.2016.1252510

Cited by 56 publications

(46 citation statements)

References 45 publications

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“…We identify the pre-campaign phase as critical; rejection rates that average around 90% suggest that it may be even more critical to success than the campaign phase. We also advance research on ECFPs (e.g., Löher, 2017;Rossi & Vismara, 2018) by establishing that platforms differ in their screening processes in the pre-campaign phase, such that success factors may be specific to certain types of ECFPs.…”

mentioning

confidence: 98%

Access Denied: How Equity Crowdfunding Platforms Use Quality Signals to Select New Ventures

Kleinert¹,

Bafera

Urbig

et al. 2021

Entrepreneurship Theory and Practice

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Among the new ventures actively seeking funds through equity crowdfunding, only a lucky few seemingly survive the rigorous selection process imposed by equity crowdfunding platforms (ECFPs). With a conjoint experiment involving decision-makers from 50 platforms in 22 countries, this study provides first quantitative evidence regarding how ECFPs actually use quality signals to select new ventures to start fundraising campaigns. The ECFPs interpret signals differently, depending on whether they impose a co-investment requirement or generate revenues from new ventures’ long-term performance. The effectiveness of the signals also is contingent on the applicant’s industry background and the signals’ accessibility in the country where the ECFP operates.

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mentioning

confidence: 98%

Access Denied: How Equity Crowdfunding Platforms Use Quality Signals to Select New Ventures

Kleinert¹,

Bafera

Urbig

et al. 2021

Entrepreneurship Theory and Practice

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“…Crowdfunding has become a novel and popular financing channel worldwide (Vroomen & Desa, 2018). The first studies that focused on equity crowdfunding platforms discussed the general functioning of this new financing form and compared the decision-making process of equity crowdfunding with that of traditional venture capital funding (Hagedorn & Pinkwart, 2016;Löher, 2017;Salomon, 2016). However, the success rate of crowdfunding campaigns on most platforms is less than 50% (Lukkarinen et al, 2016;Zhao et al, 2017).…”

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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“…The scholars examined 113 journal contributions and provided a classification based on 5 perspectives: capital market, entrepreneur, institutional, investor and platform. Within the platform perspective (scholars identified 14 papers), most publications focus on the design of ECF platforms (e.g., Chen et al, 2016;Grundy & Ohmer, 2016;Salomon, 2016;Löher, 2017).…”

Section: Literature Reviewmentioning

confidence: 99%

“…Crowdfunding platforms act as intermediaries between capital-seeking entrepreneurs and investors (Harrison, 2013;Bruton et al, 2015;Cumming et al, 2015;Salomon, 2016;Löher, 2017). These platforms are a type of multisided platforms (Ryu, 2018) and can also be interpreted as community-driven platforms.…”

Section: Literature Reviewmentioning

confidence: 99%

Marketing Strategies in Equity Crowdfunding: A Comparative Study of Italian Platforms

Troise¹

2019

IJMS

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This paper explores equity crowdfunding platforms from a marketing perspective. The present exploratory study attempts to make a double contribution to the current literature on equity crowdfunding. Firstly, it analyzes the marketing strategies of the platforms by focusing on the well-known 4Ps marketing mix framework, i.e. product, price, promotion and placement. Each dimension presents three types of categories. Second, the study investigates the marketing strategies of both large platforms and small platforms, then the differences between these two types of platforms are examined in terms of campaigns’ outcomes, i.e. funding collected (in %), funding amount (in €) and number of investors. Platforms adopt a standardization strategy for pricing and placement, while a differentiation strategy is mainly adopted for promotion and products. Large platforms offer a wider range of services (in particular ongoing campaign services and post-campaign services) and promotional activities (in particular leverage many communication channels). The analyses disclose significant statistically differences between these two types of platforms. Projects posted on large platforms are more likely to get higher campaigns’ outcomes. In literature, little is known about marketing strategies in equity crowdfunding platforms, thus this study tries to fill this gap. The paper is the first to analyze the 4Ps of platforms and to conduct a comparative empirical study to determine the differences of campaigns’ outcomes between large and small platforms. The Italian context represents a significant case of developed country in theme of equity crowdfunding. The results are useful for platform managers, entrepreneurs, investors and authorities.

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The interaction of equity crowdfunding platforms and ventures: an analysis of the preselection process

Cited by 56 publications

References 45 publications

Access Denied: How Equity Crowdfunding Platforms Use Quality Signals to Select New Ventures

Access Denied: How Equity Crowdfunding Platforms Use Quality Signals to Select New Ventures

Forecasting Crowdfunding Platform Revenues Using Arima Model

Marketing Strategies in Equity Crowdfunding: A Comparative Study of Italian Platforms

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