IDEAS home Printed from https://ideas.repec.org/h/spr/sprchp/978-3-030-65117-6_18.html
   My bibliography  Save this book chapter

Equity Crowdfunding and Capital Formation for Early-Stage Firms

In: The Palgrave Handbook of Technological Finance

Author

Listed:
  • Armin Schwienbacher

    (SKEMA Business School)

Abstract

Equity crowdfunding, as we know it today, started in 2008–2009 with the arrival of online platforms that act as intermediary between entrepreneurs and crowd investors. It has witnessed significant growth rates over the past few years, although the magnitude in terms of market size remains small compared to some other types of crowdfunding. Still, it has the potential to become a viable alternative source of finance for early-stage firms. This chapter discusses important streams of literature that have emerged in equity crowdfunding research. It includes a discussion of the functioning of platforms and compares equity crowdfunding to traditional financing sources. It further highlights research findings on the type of firms launching equity crowdfunding campaign and success drivers. This also includes the range of securities used and contractual arrangements seen in the investment documentation. Finally, it outlines the remaining challenges for equity crowdfunding to become a mainstream form of entrepreneurial finance.

Suggested Citation

  • Armin Schwienbacher, 2021. "Equity Crowdfunding and Capital Formation for Early-Stage Firms," Springer Books, in: Raghavendra Rau & Robert Wardrop & Luigi Zingales (ed.), The Palgrave Handbook of Technological Finance, pages 425-440, Springer.
    • Handle: RePEc:spr:sprchp:978-3-030-65117-6_18
    DOI: 10.1007/978-3-030-65117-6_18
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:sprchp:978-3-030-65117-6_18. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.