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The role of competition on equity crowdfunding

Author

Listed:
  • Sandra Correia

    (Universidade do Porto
    Universidade do Porto)

  • Miguel Sousa

    (Universidade do Porto
    Universidade do Porto)

  • Elísio Brandão

    (Universidade do Porto)

Abstract

Our study investigates competition’s impact on ECF campaigns, analyzing 37,201 daily observations from 1081 campaigns. While we found that the number of competing campaigns does not significantly influence the likelihood of funding, our daily analysis reveals its effect on campaign performance, impacting investors participation and funds raised. Additionally, more competitors reduce final number of investors. Furthermore, blockbuster projects from other industries have an adverse cannibalization effect, lowering campaign success probability. These findings emphasize the role of the competitive landscape in guiding entrepreneurs’ strategic decisions to improve the prospects of ECF campaigns success.

Suggested Citation

  • Sandra Correia & Miguel Sousa & Elísio Brandão, 2025. "The role of competition on equity crowdfunding," The Journal of Technology Transfer, Springer, vol. 50(4), pages 1416-1460, August.
    • Handle: RePEc:kap:jtecht:v:50:y:2025:i:4:d:10.1007_s10961-024-10145-y
    DOI: 10.1007/s10961-024-10145-y
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    References listed on IDEAS

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    JEL classification:

    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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