Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/323460 
Authors: 
Year of Publication: 
2024
Citation: 
[Journal:] Journal of Business Economics [ISSN:] 1861-8928 [Volume:] 95 [Issue:] 4 [Publisher:] Springer [Place:] Berlin, Heidelberg [Year:] 2024 [Pages:] 527-551
Publisher: 
Springer, Berlin, Heidelberg
Abstract: 
In recent years, equity crowdfunding has become increasingly popular for capital-seeking start-ups. A widely held assumption is that these ventures have no other risk capital options and see it as their “last resort” to obtain funding. However, not much is known about their narrow and broader motivational backgrounds. Based on case studies of ten crowdfunded ventures, this study unveils the motives to use equity crowdfunding and links them with organisational characteristics. The analysis shows that ventures’ risk capital choices in this setting are motivated by crowdfunding-specific investment conditions, value-add features, and their fit with ongoing organisational challenges. Thus, I provide a detailed picture of the specific role that equity crowdfunding is intended to play in these firms. Based on the analysis, a theoretical model of four motivational types is developed that could stimulate future research. I argue that instead of focusing exclusively on cost and control arguments, research about investor decisions in equity crowdfunding should also consider different forms of resourcefulness.
Subjects: 
Crowdfunding
Entrepreneurial finance
Investor choice
Risk capital
Crowdfunding motivation
JEL: 
G23
L26
M13
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article
Document Version: 
Published Version

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