Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/179252 
Year of Publication: 
2017
Series/Report no.: 
Research Papers in Economics No. 4/17
Publisher: 
Universität Trier, Fachbereich IV – Volkswirtschaftslehre, Trier
Abstract: 
In crowdfunding, start-ups can voluntarily communicate with their investors by posting updates. We investigate whether start-ups strategically use updates, which were previously shown to increase investments. To this end, we use hand-collected data of 751 updates and 39,036 investment decisions from the two major German equity crowdfunding portals Seedmatch and Companisto. We find evidence for strategic communication behavior of startups during an equity crowdfunding campaign. During the funding period, start-ups post updates with linguistic devices that enhance the group identity and the group cohesion. Furthermore, the probability of an update during the funding period increases with a strong competition of other contemporary crowdfunding campaigns.
Subjects: 
Crowdfunding
Investor Communication
Entrepreneurial Finance
Sentiment Analysis
Linguistic Devices
Document Type: 
Working Paper

Files in This Item:
File
Size
508.1 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.