IDEAS home Printed from https://ideas.repec.org/a/spr/jbecon/v95y2025i4d10.1007_s11573-024-01211-w.html
   My bibliography  Save this article

The equity crowdfunding choice: A demand-side perspective

Author

Listed:
  • Jonas Löher

    (Institut für Mittelstandsforschung (IfM) Bonn)

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.

Suggested Citation

  • Jonas Löher, 2025. "The equity crowdfunding choice: A demand-side perspective," Journal of Business Economics, Springer, vol. 95(4), pages 527-551, May.
    • Handle: RePEc:spr:jbecon:v:95:y:2025:i:4:d:10.1007_s11573-024-01211-w
    DOI: 10.1007/s11573-024-01211-w
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11573-024-01211-w
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s11573-024-01211-w?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Crowdfunding; Entrepreneurial finance; Investor choice; Risk capital; Crowdfunding motivation;
    All these keywords.

    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
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

    Statistics

    Access and download statistics

    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:jbecon:v:95:y:2025:i:4:d:10.1007_s11573-024-01211-w. 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.