Dynamics of Investor Communication in Equity Crowdfunding

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

Crowdsourcing in business and management disciplines: an integrative literature review

The objective of this study is to review crowdsourcing literature of the business and management disciplines and to know its relation with the open innovation concept. A systematic literature review is used in this study. Studies on crowdsourcing are published mostly in recent years, 2011-2013. Studies are highly dispersed, published in a very wide range of journals and are mostly based on a single case as data source. Content analysis of the findings of articles are performed to synthesize the findings in the extant literature. Most of the qualitative articles used single case method and most of the quantitative studies relied on online survey over a single crowdsourcing platform. Studies and scholars in the literature are from a limited number of countries. Although crowdsourcing as a concept overlaps with the open innovation concept, by no means, it can be considered a concept under the broad umbrella of open innovation concept. Based on identified gaps, future research avenues are presented

Crowdfunding: An innovative approach to start up with entrepreneurship

© Springer Science+Business Media Singapore 2017. It is beyond any doubt that getting finance at eve of establishing the creative projects or entrepreneurial businesses is most difficult task. Creator may face difficulty, or failure sometimes, in gathering finance due to lack of relationships with venture capitalists or banks due to lack of sound financial track record or pledge. This paper is to introduce and explain the model of a new form of financing, crowdfunding (CF) for entrepreneurs or project initiator. This research suggests that the field is fragmented and undeveloped. It explains the distinct features and the key players of CF. Crowdfunding—a mechanism, by which an innovative or patronage idea may get into reality by gathering funds from a large number of people through internet, may prove the problem solver for entrepreneurs or creators who don’t have enough resources for their dream. Research has also shown business models of crowdfunding and different sources of funding. Based on the available empirical data, we have studied how it can be helpful for capital deficit units and what are its advantages and disadvantages from founder, funder and platform’s prospective

Equity Crowdfunding: Quality Signals for Online-Platform Projects and Supporters’ Motivations

Part 3: Collaborative and Social InteractionInternational audienceThe paper assesses and evaluates quality signals for online platform projects and motivations for equity crowdfunding which might increase a potential supporter’s propensity to commit his financial resources. Based on a literature analysis a number of motives that may have an effect on the investment decision and other non-motivational dimensions are taken into account as they might convey information about the underlying and often not directly observable qualitative characteristics of the business