Sustainability in Equity Crowdfunding

37 Pages Posted: 12 Mar 2018

Date Written: March 7, 2018

Abstract

Existing studies on the relationship between sustainability and crowdfunding are focused on campaigns that provide rewards for backers. Equity crowdfunding is substantially different in terms of motivations to invest as well as in size, horizon, and expectations of the investment. For the first time – using a sample of 345 initial equity offerings in United Kingdom platforms Crowdcube and Seedrs in the period 2014-2015 – this study provides evidence of the attractiveness of sustainability-oriented ventures in equity crowdfunding. Results show that, although sustainability orientation does not increase the chances of success or of engaging professional investors, it attracts a higher number of restricted investors. This evidence is interpreted considering institutional logic, whereas professionals follow a market logic, and restricted investors consider also a community logic.

Keywords: Crowdfunding, Equity Crowdfunding, Sustainability, Crowdcube, Seedrs, Entrepreneurial Finance

JEL Classification: G30

Suggested Citation

Vismara, Silvio, Sustainability in Equity Crowdfunding (March 7, 2018). Available at SSRN: https://ssrn.com/abstract=3135935 or http://dx.doi.org/10.2139/ssrn.3135935

Silvio Vismara (Contact Author)

University of Bergamo ( email )

Via dei Caniana
2
Bergamo, 24127
Italy
24127 (Fax)

HOME PAGE: http://https://scholar.google.it/citations?user=Sa8sBkoAAAAJ&hl=en

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