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Equity crowdfunding campaign overfunding occurs when a campaign generates funds in excess of the funding goal and has hence been touted as the mark of an extraordinarily successful campaign. However, a novel theoretical lens is needed to comprehend funders' enthusiasm in their support of such campaigns. Building on the extant literature on contagion effect, we constructed a research model that posits confidence contagion invoked by confidence cues embedded in campaign materials as a key driver of overfunding. Our hypotheses were validated in two complementary empirical studies. In Study 1, we manipulated confidence cues in a controlled experiment to verify the activation of confidence contagion at the individual level. Analytical results indicate that individual funders detect self-confidence traits from confidence cues embedded in campaign materials and assimilate the fundraiser's confidence via a spontaneous social appraisal mechanism. In turn, confidence contagion drives funders to congregate and invest in campaigns. In Study 2, we analyzed a secondary dataset collected from a leading equity crowdfunding platform to discern how confidence contagion drives overfunding at the collective level. By modeling funding activities as a Hawkes process, we derived three key metrics that govern the emergence and magnitude of funding surges. We demonstrated that these metrics of funding surges mediate the impact of confidence cues on the level of overfunding for equity crowdfunding campaigns. The findings from this study could inform future research seeking to untangle the interdependencies between individual and collective mechanisms underlying crowd phenomena, provide strategic guidance to fundraisers interested in promoting the overfunding of their campaigns, and help crowdfunding platforms predict the potential extent of overfunding and advise fundraisers accordingly. [ABSTRACT FROM AUTHOR]

We build a model of equity crowdfunding that incorporates the two major funding models: all‐or‐nothing (AoN) and keep‐it‐all (KIA). Both informed and uninformed investors arrive sequentially and rationally choose whether and how much to invest. The KIA solution turns out to be a reduced version of AoN without signalling. We test predictions using data from a leading European equity crowdfunding platform and find support. Results are consistent with rational information aggregation. However, negative information cascades may still appear. The AoN crowdfunding mechanism might therefore fail to finance a nonnegligible percentage of positive NPV projects. [ABSTRACT FROM AUTHOR]

Building trust is a major challenge in digital crowdfunding environments. The existing information asymmetries between fund-seeking entrepreneurs and potential investors require the implementation of signaling strategies between both economic agents in order to generate trust and incentivize investment. This study performs a qualitative comparative analysis (QCA) to explore the interplay of visual content and social networks as information cues signaling trust. The data are sourced from Startupxplore, a Spanish equity crowdfunding platform. Configurational analysis reveals a certain degree of substitutability between traditional visual cues (images, videos) and reporting presence in social networks (Instagram, Facebook, Twitter). The results show different information disclosure strategies using traditional visual cues and social networks that lead to crowdfunding success and overfunding: substitute, mixed and unique strategies. The originality of this research lies in identifying such strategies using a configurational approach that addresses the causal complexity behind success and overfunding phenomena in equity crowdfunding, and in targeting visual cues and social networks presence as signals. This entails theoretical contributions to signaling theory in digital financial environments as well as managerial implications for entrepreneurial fundraising. [ABSTRACT FROM AUTHOR]

This research provides the first deep and empirical look into Brazil's increasing equity crowdfunding, or crowdinvest, market, and examines its peculiarities. It is a pioneering work dedicated to understanding which characteristics most impact the success of offers in the country, and whether there is any representative movement pointing to the inclusion of gender, firm age, and location or participation of small investors. We employ descriptive and quantitative research techniques and analyses all the offerings derived through this mechanism from 1 January 2017 to 31 December 2020—totaling 234 operations, considering successful offers (the ones that received investment) and unsuccessful offers (those that failed in raising funds), registered by 24 platforms in the country according to CVM (Comissão de Valores Mobiliários), the Brazilian SEC, under regulation Instruction 588. Furthermore, we use empirical and publicly available data from several sources. The findings reveal that mutual offers are more attractive to investors than those of equity, impacting the dependent variable of success. Besides this, firm location is the only inclusion aspect with representativeness among the independent variables tested. The main contributions of the research lie in providing the first empirical study that (1) consolidates a consistent database of the equity crowdfunding industry in Brazil, (2) reveals the role of crowdinvest in Brazil, related to bank credit to SMEs, and (3) provides recommendations to the main stakeholders that can improve the whole ecosystem. [ABSTRACT FROM AUTHOR]

We examine whether equity crowdfunding democratizes access to funding for nontraditional user entrepreneurs. User entrepreneurs start by creating a product to serve their own unmet needs with no expectations of monetary profit, then later decide to commercialize the product through entrepreneurship. In contrast, traditional (producer) entrepreneurs take a more profit-driven path to entrepreneurship and start by identifying an opportunity that has commercial potential. Through a randomized field experiment, we randomly reveal to some investors that a firm producing a product used by musicians is founded by a musician and conceal this founder-related information from other investors. Revealing the information suggests that the firm is a user innovator firm and concealing it suggests that the firm is a traditional producer firm. We find that investors are significantly more interested in the traditional producer firm. Through an additional field experiment, we identify that the bias against user entrepreneurs is statistical (based on a response to limited information) rather than taste based (based on an idiosyncratic dislike). Our findings suggest that user entrepreneurs can mitigate investor bias by displaying signals of quality such as those regarding firm growth and broad product appeal. [ABSTRACT FROM AUTHOR]

This study analyses the relationship between geographic space, social networks, and financial knowledge in interregional equity crowdfunding flows based on the concept of financial ecology. Using data from a leading Dutch equity crowdfunding platform, we find that interregional crowdfunding investment decreases with geographic distance. Furthermore, the negative effect of distance is weaker if interregional social networks are strong and if the investor region has a high concentration of the financial industry. The results extend the conceptual foundation of financial ecology by explaining how individual behaviors affect the macro-level output of a financial ecology. [ABSTRACT FROM AUTHOR]

Equity crowdfunding (ECF) has spread rapidly worldwide, however its use by university spin-offs (USOs) along with scholarly attention to it, is still extremely limited. In this qualitative study, we examine the views of founders of the few USOs that have used ECF in the Italian market and unveil their motivation for bypassing traditional funding models and the related benefits and risks. USOs have mixed motivations in pursuing ECF (testing the market, involving new people, overcoming limited public/private supports or funds, attractiveness to traditional investors, risky forecasts); at the same time there are significant benefits (crowd participation, strategic resources, legitimacy for the valorization/exploitation of research results and knowledge transfer mechanisms) and underlying risks (management of investors and their lack of scientific culture, data use, bureaucracy, uncertainty related to outputs/technologies). This study contributes to the literature on crowdfunding and USOs and has implications for the strategic decisions of founders, universities, policymakers, governments. [ABSTRACT FROM AUTHOR]

This study investigates campaign success in equity crowdfunding, using campaigns listed on a leading Japanese equity crowdfunding platform with an all-or-nothing rule. We examine how campaign success depends on campaign- and firm-specific characteristics, including the campaign target amount. We find that patenting positively affects campaign success and the campaign target amount. The results indicate that innovative firms have a higher probability of campaign success, while they set a higher target amount. We also provide evidence that campaigns that have already provided services and products have a lower probability of success, although not always significant, and firms tend to set a lower target amount. Moreover, campaigns launched by venture capital-backed firms are more likely to succeed than others. Furthermore, campaigns launched by firms eligible for the Angel Tax System, introduced in Japan as a tax incentive for investment in young and small firms, have a higher tendency to succeed in equity crowdfunding. Our findings suggest that the Angel Tax System attract more crowd investors and such tax incentives help raise funds on equity crowdfunding platforms for new businesses. [ABSTRACT FROM AUTHOR]

Drawing from the rich literature in behavioural finance and extensive analysis of forum data from a UK equity crowdfunding platform, we present a comprehensive framework that delineates the investment decision-making process of equity crowdfunders. Our framework captures the utilitarian, emotional, and expressive investment motives that drive crowdfunders, their behaviours and actions during and after the campaign, as well as the challenges they encounter in fulfilling their investment goals. Our work highlights the crucial need to explore the extent to which entrepreneurs and crowdfunding platforms cater to the diverse investment motives and expectations of the crowd. We offer practical insights to entrepreneurs and platforms on how they can better align their strategies with the expectations and needs of equity crowdfunders. Plain English Summary: Our research presents a novel framework that delves into the intricacies of the investment experience of equity crowdfunders. We examine the underlying motives that drive their investment decisions (utilitarian, emotional and expressive), the corresponding behavioral patterns, and the challenges that they encounter along the way. Drawing on the principles of behavioral finance, we contend that the success of equity crowdfunding as an alternative funding source for entrepreneurial firms hinges on the platform's ability to meet the diverse investment motives of the crowd across different stages of the investment process. To illustrate our argument, we conducted a netnographic analysis of a UK-based online community of equity crowdfunders. Our findings expose the adverse effects of a lack of monetization and low economic returns on the utilitarian motives of investors, leading to a diminished level of satisfaction. Additionally, we reveal that the difficulties investors face in interacting with entrepreneurs and platforms, coupled with the challenges of presenting themselves as experts, supporters of valued projects, or successful crowdfunders, can hamper the expressive and emotional motives of investors, resulting in dissatisfaction. Such challenges have the potential to erode the future interest of equity crowdfunders in the platform, undermining the viability of equity crowdfunding as a funding source for entrepreneurial firms. Our framework offers valuable insights into the factors that shape the investment experience of equity crowdfunders, providing testable propositions and highlighting the importance of addressing the identified issues to ensure the long-term sustainability and success of equity crowdfunding as a funding avenue for entrepreneurial firms. [ABSTRACT FROM AUTHOR]

We explore two recent phenomena in equity crowdfunding platforms: the development of dedicated secondary markets and the crucial role of institutional investors (lead investors in terms of pledge). First, we propose a theoretical model in which crowd and lead investors choose to finance campaigns posted by entrepreneurial firms that are heterogeneous with respect to their target and long-term return. We suppose that lead investors make huge pledges in the highest return campaigns but bear the cost of illiquidity whereas the crowd invests in all campaigns. The platform sets up a secondary market to enhance asset liquidity, but all entrepreneurial firms with successful campaign are not automatically listed. If they are listed, second-hand transactions send signals on the chance of success of the funded campaigns. Theoretical results show that increasing the number of lead investors or their pledge improves fundraising but always reduces access to the secondary market for some entrepreneurial firms. If the lead investors' cost of illiquidity is particularly low, it may even decrease the share of entrepreneurial firms that have access to the secondary market. We then test these predictions using data scraped from one of the most important ECF platforms that covers the period November 2018–October 2020. We empirically show that the number of lead investors and their pledge are positively correlated with the success of the fundraising campaign and negatively correlated with the access the entrepreneurial firms have to the secondary market. These results suggest that the illiquidity of shares is not of first importance for lead investors, who tend to make long-term commitments to crowdfunding campaigns. The implementation of secondary market is thus a useful tool to attract crowd investors but should be finely monitored by the platform to retain lead investors. Plain English Summary: The development of secondary markets and the increasing role of institutional investors (lead investors in terms of pledge) are recent phenomena in the world of equity crowdfunding platforms. We question why all funded entrepreneurial firms are not automatically listed when secondary markets open. Second-hand transactions offer a valuable exit option for investors but may send perturbing signals through too much price share volatility and possible loss of confidence from entrepreneurs and investors. The role of the platform is then to select funded campaigns authorized to be listed on its secondary market. We show both theoretically and empirically that increasing the number of lead investors or their pledge improves fundraising but surprisingly reduces access to the secondary market for some entrepreneurial firms. This suggests that the illiquidity of shares does not really matter for lead investors, who tend to make long-term commitments. In conclusion, our study provides practical implications for equity crowdfunding platforms that seek to organize the opening of secondary markets. [ABSTRACT FROM AUTHOR]

Currently, small and medium-sized enterprises (SMEs) have been the mainstay of technological innovation. Given the paucity of financial support, equity crowdfunding has become a popular way for SMEs to obtain project funds in recent years. Based on all successful crowdfunding projects on Seedrs, an equity crowdfunding platform, we delved into the impact of the content not displayed on project's presentation page, particularly past fundraising experiences, on fundraising performance. Additionally, we empirically explored the influence of three dimensions, namely whether there was past fundraising experience, the number of past fundraising experience(s), and the amount of the last fundraising, on the fundraising ratio and the number of investors. The research results indicate that (1) the fundraising ratio is not significantly related to whether there was past fundraising experience and the number of past fundraising experience(s), but positively related to the amount of the last fundraising; (2) the number of investors is not significantly related to whether there was past fundraising experience, but positively related to the number of past fundraising experience(s) and negatively related to the amount of the last fundraising. Theoretically, we explored the relations between the information not displayed and fundraising performance from the perspective of past fundraising experience, supplementing and enriching the related research. Practically, we revealed the information searching behaviors of investors and guided the crowdfunding platforms in the information display. [ABSTRACT FROM AUTHOR]

Purpose: Identifying the advantages and disadvantages of crowdfunding from the perspective of both supporters/investors and project owners seeking funding. Design/methodology/approach: The main method used in the writing of this article is the analysis of scholarly literature on crowdfunding topics and materials published by crowdfunding platforms. A search was conducted in Web of Science, from 2006 to May 2024. Papers directly and indirectly related to the advantages and disadvantages of crowdfunding were included. The thematic scope of the article is covering the advantages and disadvantages of crowdfunding from the point of view of both interested parties – supporters/investors and those seeking financing. Findings: In the course of work, it was found that crowdfunding offers numerous advantages and disadvantages from the perspective of both supporters/investors and project owners seeking funding. Originality/value: Identification and compilation of advantages and disadvantages of crowdfunding: a table -based analysis from the perspective of investors and project owners’ perspective targeted by the article. Timeline of crowdfunding platform development in Poland compared to platforms worldwide. [ABSTRACT FROM AUTHOR]

Purpose – This empirical study uses herd behavior model to explore the role of anchor investors in ensuring fundraising success and overfunding of crowdfunded ventures. Design/methodology/approach – Qualitative comparative analysis (QCA) is applied to find the configurational patterns describing how anchor investors' information disclosure leads to successful financing and overfunding. Findings – Even when the anchor investor's resume is not detailed or the anchor investor has little experience in entrepreneurial investment, success or overfunding can be achieved, provided the anchor investor is a corporation rather than an individual. For individual anchor investors, a detailed resume matters. Overfunding can be achieved even when an individual anchor investor makes a small relative investment, if this small relative investment is compensated for by a detailed resume. Experience in entrepreneurial investment is crucial when individual anchor investors have few previous investments. Regardless of the anchor investor's identity, investment in absolute terms is crucial for crowdfunding success when experience in entrepreneurial investment is low. Such experience must be extensive if the anchor investor's resume is not detailed. Practical implications – Both entrepreneurs and crowdfunding platforms can benefit from the findings in relation to the design of campaigns that use anchor investors' informational cues to achieve success and overfunding. Originality/value – The study examines the importance of anchor investors' information disclosure in digital crowdfunding environments, differentiating between individual and corporate anchor investors. 研究目的 – 本實證研究使用羊群行為模型, 去探究錨定投資者在確保眾籌活動可達成功籌資以及過多籌資方面所扮演的角色。 研究設計/方法/理念 – 研究人員以定性比較分析法、去找出描述錨定投資者的資訊公佈如何帶來成功融資和過多籌資的配置模式。 研究結果 – 研究結果顯示、只要錨定投資者不是個人、而是一間公司, 則即使他們的履歷不詳盡, 又或他們對企業投資的經驗淺薄, 也無礙籌資或過多籌資的成功完成。如錨定投資者為個人, 則詳盡的履歷會影響甚鉅。即使個人錨定投資者相對而言參與少量的投資, 但若這少量的投資給他們詳盡的履歷所彌補的話, 則過多籌資仍可成功達到。若個別錨定投資者原有的投資量不多的話, 則企業投資的經驗至為重要。不管錨定投資者的身份是什麼, 若他們對企業投資所持的經驗淺薄, 則按絕對值計算的投資額對眾籌能否成功至為重要。若錨定投資者的履歷不詳盡, 則這種經驗必須是豐富廣泛的。 研究的原創性/價值 – 本研究區分了個人錨定投資者與公司錨定投資者兩者對眾籌的影響, 就此而研究在數碼的眾籌環境裡, 錨定投資者信息公佈的重要性。 實務方面的啟示 – 研究結果可幫助企業家和群眾募資平台去設計可使用錨定投資者的資訊提示來達至成功眾籌和過多籌資的活動。

In this study, we focus on entrepreneurs' passion as a signal in influencing fundraising success via equity crowdfunding. Moreover, we look at the role of entrepreneurs' task-specific experience – industry and startup experience- and company control in influencing the credibility of passion as a signal. Through a text analysis of 606 equity crowdfunding campaigns in the UK, we found that entrepreneurs' displayed passion positively influences funding success and that entrepreneurs' startup experience reinforces the credibility of this signal, i.e., the impact of passion on fundraising success. Additionally, we found that when entrepreneurs retain more shares of the company, the influence of displayed passion on funding success is greater. Our study contributes to the crowdfunding literature highlighting the importance of entrepreneurs' passion in influencing fundraising success via crowdfunding, and what influences the credibility of passion as a signal. [ABSTRACT FROM AUTHOR]

This study investigates the value of third-party ratings of personality in investor pitches for predicting the investment intention and successful equity crowdfunding of U.S.-based startups. Based on 1175 ratings of 100 randomly selected investor pitch videos, we find that not only do investors' impressions of entrepreneurs Big Five personality traits predict investment intention but that several of these also predict entrepreneurs' actual crowdfunding success (particularly: openness, conscientiousness and extraversion). The study contributes to our knowledge of the links between (perceived) individual-level traits of the entrepreneur and their ability to finance a venture, a key challenge in the early stages of startups. [ABSTRACT FROM AUTHOR]

Copyright of Ruch Prawniczy, Ekonomiczny i Socjologiczny (0035-9629) is the property of Adam Mickiewicz University and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Purpose: This study explores whether herd behavior exists for equity crowdfunding investors in China and whether this herding is rational. Design/methodology/approach: Based on signaling theory and social learning theory, two hypotheses were proposed. This study employed two approaches to collect data. First, this paper analyzed 3,041 investments on an equity crowdfunding platform in China using Python programming and built a panel data model. Second, based on a unique experiment design, this study conducted several relevant herd behavior simulation experiments. Findings: We found that investors in the Chinese equity crowdfunding market exhibit herd behavior and that this herding is rational. Project attributes play a negative role in moderating the relationship between the current investment amount and cumulative investments. Experimental results further support our findings. Originality/value: This study contributes to the emerging literature on herding in crowdfunding by focusing on equity crowdfunding in China. We are the first to explore whether Chinese equity crowdfunding investors exhibit rational herding behavior. The study is also original in applying social learning theory to equity crowdfunding and in using both actual crowdfunding campaigns and experimental approaches to collect data. This study has valuable implications to practice. [ABSTRACT FROM AUTHOR]

Blockchain-based tokens seek to overcome the friction and opaqueness of the legacy financial infrastructure in the company funding process, particularly in the early-stage and equity crowdfunding domain. While Initial Coin Offerings and Security Token Offerings proposed a solution for crowdfunding, early-stage companies still face challenges in using blockchain as an alternative equity funding infrastructure. In this context, the idea of blockchain-based equity tokens remains hypothetical. In addition, the literature lacks design theory for the development and implementation of blockchain-based equity tokens. This research bridges this gap by designing, developing, and evaluating an equity token prototype for crowdfunding, following the design science research approach. We propose a refined crowdfunding model and derive seven design principles that contribute to the design theory of equity tokens. The research results show that blockchain-based equity tokens improve efficiency, transparency, and interoperability while meeting regulatory requirements and facilitating secondary market trading. [ABSTRACT FROM AUTHOR]

Purpose: This study investigates the operational processes, oversight practices, investor incentives and business impacts in the localization of equity crowdfunding in Indonesia through an exploratory case study of the LandX platform. Design/Methodology/Approach: Qualitative data was collected through interviews with 5 key personnel of LandX and document analysis of 8 internal materials related to operational processes and financial outcomes. Data underwent inductive thematic analysis. Findings: Findings reveal LandX conducts structured due diligence encompassing weighted financial and qualitative criteria that represent industry best practices, balanced by outcome uncertainties. Investor incentives span portfolio diversification to personal passions, requiring tailored communication and education to ensure informed participation. While complying strictly with regulations, LandX also demonstrates responsible self-governance through transparency and protections that exceed policy requirements. Qualitative indications point to accelerated issuer growth, but quantified impact data remains limited. Practical Implications: Results provide insights into prudent navigation required to advance equity crowdfunding in Indonesia through platform diligence and education, calibrated outcome expectations, updated regulations, and multi-stakeholder collaboration. Originality/Value: This pioneering study provides timely qualitative insights into equity crowdfunding localization dynamics in the under-examined context of Indonesia. Paper Type: Case Study

This research provides the first deep and empirical look into Brazil’s increasing equity crowdfunding, or crowdinvest, market, and examines its peculiarities. It is a pioneering work dedicated to understanding which characteristics most impact the success of offers in the country, and whether there is any representative movement pointing to the inclusion of gender, firm age, and location or participation of small investors. We employ descriptive and quantitative research techniques and analyses all the offerings derived through this mechanism from 1 January 2017 to 31 December 2020—totaling 234 operations, considering successful offers (the ones that received investment) and unsuccessful offers (those that failed in raising funds), registered by 24 platforms in the country according to CVM (Comissão de Valores Mobiliários), the Brazilian SEC, under regulation Instruction 588. Furthermore, we use empirical and publicly available data from several sources. The findings reveal that mutual offers are more attractive to investors than those of equity, impacting the dependent variable of success. Besides this, firm location is the only inclusion aspect with representativeness among the independent variables tested. The main contributions of the research lie in providing the first empirical study that (1) consolidates a consistent database of the equity crowdfunding industry in Brazil, (2) reveals the role of crowdinvest in Brazil, related to bank credit to SMEs, and (3) provides recommendations to the main stakeholders that can improve the whole ecosystem.

Copyright of Recherches en Sciences de Gestion is the property of ISEOR and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Contaduría y Administración is the property of Facultad de Contaduria y Administracion-Universidad Nacional Autonoma de Mexico and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

When entrepreneurs express their ambitions to achieve extraordinary financial growth, it may signal growth potential to early-stage investors. However, as this study proposes, promising overly high growth ambitions might backfire for entrepreneurs—dismissed as cheap talk and even penalized due to investors' credibility concerns. Therefore, entrepreneurs may need to complement their high ambitions with costly signals, such as citing their rich experiences or patents. Such costly signals can serve as credibility buffers and transform high ambitions from cheap talk into credible signals. Two empirical studies, based on campaign data from an equity crowdfunding setting and a conjoint experiment, support these arguments. [ABSTRACT FROM AUTHOR]

This study investigates whether European Cleantech firms with patents attract more equity crowdfunding than those without patents. We find that firms with patents indeed raise significantly more funding in crowdfunding campaigns. We also find, inter alia, that two measures of innovation —firms’ intangible asset values and the number of patents pending— increase after a successful (in terms of amount raised) crowdfunding campaign. Firms with patents granted have more debt finance than firms with patents pending. A key determinant of the amount of crowdfunding raised is the number of patents pending, suggesting that equity investors are keen to invest on the promise of success. We also find that debt finance has a significant impact on the development of intangible assets, which indicates the role of capitalized intangible assets and patents to secure debt. Our findings suggest support for signaling theory, as patents reduce information asymmetries and act as a signal for equity crowdfunding investors. [ABSTRACT FROM AUTHOR]

Copyright of European Journal of Management & Business Economics is the property of Emerald Publishing Limited and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The secondary market in equity crowdfunding aims to facilitate Investors in trading their Micro, Small, and Medium Enterprises (MSMEs) shares to other Investors as an exit and entrance strategy for interested Investors. Therefore, the traded shares must be liquid, ensuring that the secondary market of equity crowdfunding operates fairly, orderly, and efficiently. However, implementing the secondary market in equity crowdfunding in Indonesia, introduced in 2018 by the Financial Services Authority (OJK), still leaves room for evaluation and improvement. This thesis first examines the organization of the secondary market in Indonesia, which lacks legal certainty for both the Organizer and Users. Secondly, it explores the regulations on the secondary market in equity-based Crowdfunding in the United States, which can be used as a reference to develop legal regulations in Indonesia, including the prohibition of share sales in the first year and the classification of equity-based Crowdfunding for startup companies and medium-sized enterprises. Thirdly, applying American laws in the Indonesian legal framework can provide greater financial stability for issuing companies and reduce the risk of bankruptcy for Investors in equity-based Crowdfunding. The research findings indicate that the management and philosophy of the secondary market in equity crowdfunding cannot be equated with a Stock Exchange. Preventive legal protection for Investors can be provided through guidelines issued by the OJK, such as auto-reject limits, standardized buying and selling mechanisms, trading hours, transaction fees collected by the Organizer, transparency of daily transaction summary data, and mechanisms for determining the fair share price in initial trading on the secondary market. There are criminal and administrative sanctions for repressive legal protection.

This study offers a bibliometric and Scientometric examination of the existing body of literature on crowdfunding. The analysis incorporates a total of 1156 articles from the Scopus database. The data is presented using the bibliometric technique, employing R-studio and VOS viewer software. A Scientometric analysis was undertaken to ascertain the discoveries and patterns of research themes, current and future research orientations, impact, co-occurrence, co-citations, as well as trends in impact and collaboration. The literature on crowdfunding has exhibited significant growth from 2010 to 2023. The number of publications pertaining to crowdfunding has experienced substantial growth between the years 2020 and 2023. The highlighted research trends and collaboration trends encompass various aspects of crowdfunding and resource mobilization, including crowdfunding, fundraising, social capital, peer-to-peer lending, venture capital, and crowdfunding success. Additionally, this study offers an expanded scope for the study based on a comprehensive examination of existing literature. The outcomes of our study have the potential to offer valuable insights for forthcoming scholars, corporations, and regulatory bodies seeking to comprehend the present patterns and anticipated advancements in the field of crowdfunding research.

Equity crowdfunding platforms provide investors the opportunity to engage with entrepreneurs and each other through online discussion boards. However, little is known about the effects of such discussion boards on crowdfunding dynamics. Based on the analysis of 264 campaigns comprising 5,916 funding day observations, we use the instrumental variable approach and establish a robust causal effect of discussion threads on fundraising dynamics. The effect is positive and loses its significance with an increasing number of discussion threads. Unlike prior research, our results show that the overall effect does not differ by discussion topics. However, interactions exist between discussion topics and venture characteristics. Product-focused discussions appear to be more influential for early stage ventures that have yet to generate sales. We discuss the implications of our results for entrepreneurs and investors as well as crowdfunding platforms and provide suggestions for future research. [ABSTRACT FROM AUTHOR]

We investigate the role of community-level social capital in individuals' investment decisions in equity crowdfunding. We exploit a hand-collected dataset of individual investments pledged to successful campaigns in Italy between 2014 and 2018. Individuals born in provinces with high social capital invest more substantially in riskier campaigns. Contrary to inborn social capital, social capital in the province where investors live has no impact. This evidence survives several robustness checks and highlights the crucial role of an individual's cultural traits in fostering investment in equity crowdfunding. Plain English Summary: Do characteristics of investors' birthplace shape behavior? We study community-level social capital and investments in equity crowdfunding and show that cultural factors, rather than the environment, are correlated with investment choices. People born or living in high social capital areas are more likely to trust others, either because of higher cooperative values and beliefs stowed in their cultural makeup, or because of the influence of the surrounding environment. We find that higher inborn social capital of investors results in higher amounts pledged to riskier campaigns, while conditions in their living place have no impact. By unveiling such relationship, we find interesting implications for entrepreneurs and managers of crowdfunding platforms. Founders of risky ventures should target pledgers born in districts where local social capital is more prominent. Platforms' managers should support entrepreneurs in following this strategy and consider existing clients' place of birth in marketing efforts to maximize the probability of success. [ABSTRACT FROM AUTHOR]