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Access Denied: How Equity Crowdfunding Platforms Use Quality Signals to Select New Ventures

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  • Simon Kleinert
  • Julian Bafera
  • Diemo Urbig
  • Christine K. Volkmann

Abstract

Among the new ventures actively seeking funds through equity crowdfunding, only a lucky few seemingly survive the rigorous selection process imposed by equity crowdfunding platforms (ECFPs). With a conjoint experiment involving decision-makers from 50 platforms in 22 countries, this study provides first quantitative evidence regarding how ECFPs actually use quality signals to select new ventures to start fundraising campaigns. The ECFPs interpret signals differently, depending on whether they impose a co-investment requirement or generate revenues from new ventures’ long-term performance. The effectiveness of the signals also is contingent on the applicant’s industry background and the signals’ accessibility in the country where the ECFP operates.

Suggested Citation

  • Simon Kleinert & Julian Bafera & Diemo Urbig & Christine K. Volkmann, 2022. "Access Denied: How Equity Crowdfunding Platforms Use Quality Signals to Select New Ventures," Entrepreneurship Theory and Practice, , vol. 46(6), pages 1626-1657, November.
    • Handle: RePEc:sae:entthe:v:46:y:2022:i:6:p:1626-1657
    DOI: 10.1177/10422587211011945
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    Cited by:

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    3. Tan N. H. Do & Muhammad A. Cheema & Tom Vanacker, 2026. "Mixed blessings? Venture capitalists, angels, and the performance of equity crowdfunded firms," Small Business Economics, Springer, vol. 66(1), pages 531-550, January.
    4. Rocha, Rocío & García-Ramos, Rebeca & Cobo, Ángel, 2025. "Selection of a crowdfunding platform by entrepreneurs using a multi-criteria approach: an application to green energy investment projects," Technological Forecasting and Social Change, Elsevier, vol. 213(C).
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    9. Caroline Lindlar & Eva Alexandra Jakob & Jeannette Mai Dinh & Marius Claus Wehner, 2025. "Failure signals in sustainable crowdfunding: distinct reactions driven by crowd investors’ experience," Small Business Economics, Springer, vol. 65(3), pages 1877-1907, October.
    10. Simon Kleinert & Silvio Vismara, 2026. "The reconfiguration of entrepreneurship: how digital platforms and artificial intelligence transform the entrepreneurial process," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 16(1), pages 1-24, March.
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    14. Adeniji, James & Essuman, Dominic & Olabode, Oluwaseun E., 2026. "Saying enough vs saying too much: Lessons on optimizing project risk description for crowdfunding success in developing countries," Technovation, Elsevier, vol. 149(C).
    15. Massimo G. Colombo & Kourosh Shafi, 2026. "Firms’ venture capital affiliation, platforms’ “skin in the game” and the success of equity crowdfunding campaigns," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 53(1), pages 167-197, March.
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