Success Drivers of Equity Crowdfunding: A Study in the UK Market

Posted: 24 Jul 2017

See all articles by Duyen Dai Chu

Duyen Dai Chu

University of Lincoln (UK)

Hao Quach

University of Lincoln (UK)

Hanxiong Zhang

Sheffield University Management School

Date Written: July 19, 2017

Abstract

Crowdfunding is an innovative fundraising practice witnessing phenomenal development over the last decade. The UK is the biggest crowdfunding market in Europe in terms of market share, number of platforms and funders (Rossi, 2014). However, this phenomenon in this market is still understudied, especially equity crowdfunding. Drawing on a relative big sample data in the UK market, our research makes two main contributions to the current limited literature on equity crowdfunding. First, our study finds that investment criteria traditionally used by venture capital and business angel investors can be success predictors of equity crowdfunding campaigns. Second, our research confirms findings in prior studies that pre-determined campaign characteristics such as funding target, campaign duration, the provision of financials and the use of social networks can be success drivers of equity crowdfunding campaigns. These findings have numerous implications for actors in equity crowdfunding, including practitioners, policy makers and regulators.

Keywords: Equity crowdfunding, success drivers, UK market

Suggested Citation

Chu, Duyen Dai and Quach, Hao and Zhang, Hanxiong, Success Drivers of Equity Crowdfunding: A Study in the UK Market (July 19, 2017). Available at SSRN: https://ssrn.com/abstract=3005504 or http://dx.doi.org/10.2139/ssrn.3005504

Duyen Dai Chu (Contact Author)

University of Lincoln (UK) ( email )

Lincoln LN2
United Kingdom

Hao Quach

University of Lincoln (UK) ( email )

Lincoln LN2
United Kingdom

Hanxiong Zhang

Sheffield University Management School ( email )

University of Sheffield
Conduit Road
Sheffield, S10 1FL
United Kingdom

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
637
PlumX Metrics