Skip to main content
SpringerLink
Log in

Equity crowdfunding: a systematic review of the literature

  • Published:
Small Business Economics Aims and scope Submit manuscript

Abstract

Equity crowdfunding is an emerging area of research within the broader sphere of entrepreneurship. Since 2012, research activities are steadily advancing, providing the foundation for a promising field of research. Despite ongoing scientific discussions, equity crowdfunding research is still in its infancy and scholarly knowledge remains limited and fragmented. To bring clarity to this fragmented field and to further advance the scientific process, we conduct a systematic literature review of 113 journal contributions and gray papers, published between 2012 and 2017. Based on an in-depth analysis of identified publications, we describe the landscape of the equity crowdfunding field concentrating on two aspects. First, we conduct a descriptive analysis of equity crowdfunding research to illustrate the scientific development. Second, we categorize relevant contributions into five different perspectives: capital market, entrepreneur, institutional, investor, and platform and perform a thematic analysis to reveal dominant themes and sub-themes within each perspective. Our study highlights several promising directions for encouraging further advancements in equity crowdfunding research.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1
Fig. 2
Fig. 3

Similar content being viewed by others

Notes

  1. The term “crowdinvesting” is frequently used in German speaking countries.

  2. For readers’ convenience, we updated the publication dates of earlier published versions. For our analysis, we used the first published online version according to our time frame.

  3. Research areas referring to legal and regulatory issues will be part of chapter 3.4.4

  4. This information was received from the Seedrs Blog. https://www.seedrs.com/learn/blog/seedrs-news/features-updates/secondarymarket (Accessed 4 December 2017).

  5. Some ventures have successfully obtained a subsequent equity crowdfunding campaign.

  6. For further information on warm-glow theory, see Andreoni (1990).

  7. No further information about the sample is available (e.g. platforms, equity crowdfunding experiences etc.)

  8. For more information about calculus and relationship trust, see e.g. Ba et al. (2003) and Urban et al. (2009).

  9. For a systematic review of research on the theory of consumption values, see Sánchez-Fernández and Iniesta-Borillo 2007.

  10. Pure crowd = without lead investors, Hybrid crowd = crowd is led by a lead investor.

  11. Due to variation according the final number of observations, we are not able to name the exact number of syndicated and non-syndicated deals compared.

  12. This framework incorporates all information system related risks. For more information, see Sherer and Alter (2004).

References

  • Abdullah, S., & Oseni, U. A. (2017). Toward a Shari’ah compliant equity-based crowdfunding for the halal industry in Malaysia. International Journal of Business and Society, 18(S1), 223–240.

    Google Scholar 

  • Abrams, E. (2017). Securities Crowdfunding: More than Family, Friends, and Fools? SSRN working paper, available at https://ssrn.com/abstract=2902217. Accessed 3 June 2018.

  • Aggarwal, R., Prabhala, N. R., & Puri, M. (2002). Institutional allocation in initial public offerings: Empirical evidence. Journal of Finance, 57(3), 1421–1442.

    Article  Google Scholar 

  • Agrawal, A., Catalini, C., & Goldfarb, A. (2014). Some simple economics of crowdfunding. Innovation Policy and the Economy, 14(1), 63–97.

    Article  Google Scholar 

  • Agrawal, A., Catalini, C., & Goldfarb, A. (2016). Are syndicates the killer app of equity crowdfunding? California Management Review, 58(2), 111–124.

    Article  Google Scholar 

  • Ahlers, G.K., Cumming, D.J., Guenther, C., & Schweizer, D. (2012). Signaling in Equity Crowdfunding. SSRN working paper, available at https://ssrn.com/abstract=2161587. Accessed 3 Mar 2018.

  • Ahlers, G. K., Cumming, D., Günther, C., & Schweizer, D. (2015). Signaling in equity crowdfunding. Entrepreneurship: Theory and Practice, 39(4), 955–980.

    Google Scholar 

  • Akerlof, G. A. (1970). The market for “lemons”: quality uncertainty and the market mechanism. The Quarterly Journal of Economics, 84(3), 488–500.

    Article  Google Scholar 

  • Allison, T. H., McKenny, A. F., & Short, J. C. (2013). The effect of entrepreneurial rhetoric on microlending investment: an examination of the warm-glow effect. Journal of Business Venturing, 28(6), 690–707.

    Article  Google Scholar 

  • Allison, T. H., Davis, B. C., Short, J. C., & Webb, J. W. (2015). Crowdfunding in a prosocial microlending environment: examining the role of intrinsic versus extrinsic cues. Entrepreneurship Theory and Practice, 39(1), 53–73.

    Article  Google Scholar 

  • Anand, A. I. (2014). Is Crowdfunding Bad for Investors? The Canadian Business Law Journal, 55, 215–229. Available at https://ssrn.com/abstract=2603447. Accessed 3 Mar 2018.

  • Ancev, T. (2015). Equity crowdfunding in Australia: a regulatory balancing act. Company and Securities Law Journal, 33(6), 352–371.

    Google Scholar 

  • Andreoni, J. (1990). Impure altruism and donations to public goods: a theory of warm-glow giving. The Economic Journal, 100(401), 464–477.

    Article  Google Scholar 

  • Angerer, M., Brem, A., Kraus, S., & Peter, A. (2017). Start-up funding via equity crowdfunding in Germany—a qualitative analysis of success factors. The Journal of Entrepreneurial Finance, 19(1), 1–34.

    Google Scholar 

  • Arenas, A., Goh, J. M., & Podar, M. (2015). A work-systems approach to classifying risks in crowdfunding Platforms: an exploratory analysis. Paper presented at the American Conference on Information Systems (AMCIS), August, Puerto Rico, Brazil.

  • Åstebro, T., Fernández Sierra, M., Lovo, S., & Vulkan, N. (2017). Herding in equity crowdfunding. SSRN working paper, available at https://ssrn.com/abstract=3084140. Accessed 3 June 2018.

  • Audretsch, D. B., Bönte, W., & Mahagaonkar, P. (2012). Financial signaling by innovative nascent ventures: The relevance of patents and prototypes. Research Policy, 41(8), 1407–1421.

    Article  Google Scholar 

  • Azoulay, P., Stuart, T., & Wang, Y. (2013). Matthew: effect or fable? Management Science, 60(1), 92–109.

    Article  Google Scholar 

  • Ba, S., Whinston, A. B., & Zhang, H. (2003). Building trust in online auction markets through an economic incentive mechanism. Decision Support Systems, 35(3), 273–286.

    Article  Google Scholar 

  • Bammens, Y., & Collewaert, V. (2014). Trust between entrepreneurs and angel investors: exploring positive and negative implications for venture performance assessments. Journal of Management, 40(7), 1980–2008.

    Article  Google Scholar 

  • Bapna, S. (2017). Complementarity of signals in early-stage equity investment decisions: evidence from a randomized field experiment. Management Science, Articles in Advance.

  • Becker-Blease, J. R., & Sohl, J. E. (2011). The effect of gender diversity on angel group investment. Entrepreneurship: Theory and Practice, 35(4), 709–733.

    Google Scholar 

  • Belleflamme, P., Lambert, T., & Schwienbacher, A. (2011). Crowdfunding: tapping the right crowd. CORE Discussion Papers, No. 2011032.

  • Belleflamme, P., Lambert, T., & Schwienbacher, A. (2014). Crowdfunding: tapping the right crowd. Journal of Business Venturing, 29(5), 585–609.

    Article  Google Scholar 

  • Belleflamme, P., Omrani, N., & Peitz, M. (2015). The economics of crowdfunding platforms. Information Economics and Policy, 33, 11–28.

    Article  Google Scholar 

  • Blaseg, D., & Koetter, M. (2015). Friend or foe? Crowdfunding versus credit when banks are stressed. IWH Discussion Papers, No.8, Halle, Germany.

  • Block, J. H., Colombo, M. G., Cumming, D. J., & Vismara, S. (2018a). New players in entrepreneurial finance and why they are there. Small Business Economics, 50(2), 239–250.

    Article  Google Scholar 

  • Block, J., Hornuf, L., & Moritz, A. (2018b). Which updates during an equity crowdfunding campaign increase crowd participation? Small Business Economics, 50(1), 3–27.

    Article  Google Scholar 

  • Borello, G., De Crescenzo, V., & Pichler, F. (2015). The funding gap and the role of financial return crowdfunding: some evidence from European platforms. The Journal of Internet Banking and Commerce, 20(1), 1–20.

    Google Scholar 

  • Braun, S. (2015). Deutsche Crowdinvesting-Portale: neue Geschäftsmodelle für KMU. Lüneburger Beiträge zur Gründungsforschung, No.11. Lüneburg: Leuphana Universität.

    Google Scholar 

  • Braun, V., & Clarke, V. (2006). Using thematic analysis in psychology. Qualitative Research in Psychology, 3, 77–101.

    Article  Google Scholar 

  • Brem, A., & Wassong, N. (2014). Wer investiert warum? Eine Analyse von Investmententscheidungen bei Crowdfunding-Projekten. ZfKE, 62(1), 31–55.

    Google Scholar 

  • Brem, A., Jovanović, T., & Tomczak, A. (2014). Crowdsourcing, Crowdfunding, Crowdinvesting: Eine Renaissance von Genossenschaften bei Unternehmensgründungen? Zeitschrift für das gesamte Genossenschaftswesen, 64(1), 39–52.

    Google Scholar 

  • Bretschneider, U., & Leimeister, J. M. (2017). Not just an Ego trip: exploring Backers' motivation for funding in incentive-based crowdfunding. The Journal of Strategic Information Systems, 26(4), 246–260.

    Article  Google Scholar 

  • Brown, R., Mawson, S., Rowe, A., & Mason, C. (2015). Harnessing the Crowd: The Demand-Side Dynamics of Equity Crowdfunding in Nascent Entrepreneurial Ventures. Working Papers in Responsible Banking & Finance, No. 15–009, University of St. Andrews.

  • Bruton, G., Khavul, S., Siegel, D., & Wright, M. (2015). New financial alternatives in seeding entrepreneurship: Microfinance, crowdfunding, and peer-to-peer innovations. Entrepreneurship: Theory and Practice, 39(1), 9–26.

    Google Scholar 

  • Burtch, G., Ghose, A., & Wattal, S. (2013). An empirical examination of the antecedents and consequences of contribution patterns in crowd-funded markets. Information Systems Research, 24(3), 499–519.

    Article  Google Scholar 

  • Chen, J. (2017). Crowdfunding without intermediation? Working paper available at https://pdfs.semanticscholar.org/3e73/20576c3dd9435ebfa3d9823dd355bab940f8.pdf Accessed 3 June 2018.

  • Chen, L., Huang, Z., & Liu, D. (2016). Pure and hybrid crowds in crowdfunding markets. Financial Innovation, 2(1), 1–18.

    Article  Google Scholar 

  • Cholakova, M., & Clarysse, B. (2015). Does the possibility to make equity investments in crowdfunding projects crowd out reward-based investments? Entrepreneurship: Theory and Practice, 39(1), 145–172.

    Google Scholar 

  • Croson, R., & Gneezy, U. (2009). Gender differences in preferences. Journal of Economic Literature, 47(2), 448–474.

    Article  Google Scholar 

  • Cumming, D., & Groh, A. P. (2018). Entrepreneurial finance: unifying themes and future directions. Journal of Corporate Finance, 50, 538–555.

    Article  Google Scholar 

  • Cumming, D., & Johan, S. (2013). Demand-driven securities regulation: evidence from crowdfunding. Venture Capital: An International Journal of Entrepreneurial Finance, 15(4), 361–379.

    Article  Google Scholar 

  • Cumming, D., & Johan, S. (2017a). Crowdfunding and entrepreneurial internationalization. In N. Dai & D. Siegel (Eds.), Entrepreneurial finance: Managerial and policy implications (pp. 109–126). London: The World Scientific Publishers.

    Google Scholar 

  • Cumming, D., & Johan, S. (2017b). The problems with and promise of entrepreneurial finance. Strategic Entrepreneurship Journal, 11(3), 357–370.

    Article  Google Scholar 

  • Cumming, D. J., & Vismara, S. (2017). De-segmenting research in entrepreneurial finance. Venture Capital. An International Journal of Entrepreneurial Finance, 19(1–2), 17–27.

    Article  Google Scholar 

  • Cumming, D. J., & Zhang, Y. (2018). Are crowdfunding platforms active and effective intermediaries? SSRN working paper, available at https://ssrn.com/abstract=2882026. Accessed 4 June 2018.

  • Cumming, D. J., Johan, S., & Zhang, Y. (2018a). Public policy towards entrepreneurial finance: spillovers and the scale-up gap. SSRN working paper, available at https://ssrn.com/abstract=3108127. Accessed 4 June 2018.

  • Cumming, D.J., Johan, S.A., & Zhang, Y. (2018b). ‘Equity Crowdfunding,’ Working Paper, York University and Gonzaga University.

  • Daskalakis, N., & Yue, W. (2017). User's Perceptions of Motivations and Risks in Crowdfunding with Financial Returns. SSRN working paper, available at https://ssrn.com/abstract=2968912. Accessed 4 June 2018.

  • de la Vina, L., & Black, S. (2016). US equity crowdfunding: A review of current legislation and a conceptual model of the Implications for equity crowdfunding. Paper presented at the United States Association for Small Business and Entrepreneurship conference, January, San Diego.

  • Delmar, F., & Davidsson, P. (2000). Where do they come from? Prevalence and characteristics of nascent entrepreneurs. Entrepreneurship and Regional Development, 12, 1–23.

    Article  Google Scholar 

  • Di Pietro, F., Prencipe, A., & Majchrzak, A. (2017). Crowd equity investors: an underutilized asset for open innovation in startups. California Management Review, 1-28.

  • Dilger, M. G., Jovanović, T., & Voigt, K. I. (2017). Upcrowding energy co-operatives–evaluating the potential of crowdfunding for business model innovation of energy co-operatives. Journal of Environmental Management, 198, 50–62.

    Article  Google Scholar 

  • Dorff, M. B. (2014). The siren call of equity crowdfunding. Journal of Corporation Law, 39, 493–524.

    Google Scholar 

  • Dorfleitner, G., Kapitz, J., & Wimmer, M. (2014). Crowdinvesting als Finanzierungs-alternative für kleine und mittlere Unternehmen. Die Betriebswirtschaft, 74(5), 283.

    Google Scholar 

  • Dorfleitner, G., Hornuf, L., & Weber, M. (2017). Dynamics of investor communication in equity crowdfunding. Max Planck Institute for Innovation & Competition Research Paper No. 17–06, available at SSRN: https://ssrn.com/abstract=2962951. Accessed 4 June 2018.

  • Duoqi, X. U., & Mingyu, G. E. (2017). Equity-based crowdfunding in China: beginning with the first crowdfunding financing case. Asian Journal of Law and Society, 4(1), 81–107.

    Article  Google Scholar 

  • Đurđenić, K. (2017). Crowdfunding–Croatian legal perspective and comparison to other sources of financing. Public Sector Economics, 41(2), 259–287.

    Article  Google Scholar 

  • Estrin, S., Gozman, D., & Khavul, S. (2018). The evolution and adoption of equity crowdfunding: entrepreneur and investor entry into a new market. Small Business Economics, 1–15.

  • Fayolle, A., & Liñán, F. (2014). The future of research on entrepreneurial intentions. Journal of Business Research, 67(5), 663–666.

    Article  Google Scholar 

  • Feola, R., Parente, R., D’Onofrio, T., Marinato, E., & Pellegrino, D. (2017). The Evolution of Crowdfunding Towards an Impact Investing Logic: The Case of Paulownia Social Project. Journal of Modern Accounting and Auditing, 13(1), 19–34.

  • Figliomeni, M. (2014). Grassroots capitalism or: how I learned to stop worrying about financial risk in the exempt market and love equity crowdfunding. Dalhousie Journal of Legal Studies, 23, 105–129.

    Google Scholar 

  • Gabison, G. A. (2014). Equity crowdfunding: All regulated but not equal. DePaul Business. & Commercial Law Journal, 13, 359–409.

    Google Scholar 

  • Giga, A. (2017). Firm financing through equity crowdfunding. SSRN working paper, available at https://ssrn.com/abstract=2995592. Accessed 5 June 2018.

  • Glänzel, W. (2003). Bibliometrics as a Research Field: A Course on Theory and Application of Bibliometric Indicators. Available at http://nsdl.niscair.res.in/jspui/bitstream/123456789/968/1/Bib_Module_KUL.pdf. Accessed 31 July 2018.

  • Gleasure, R., & Feller, J. (2016). Emerging technologies and the democratization of financial services: a meta triangulation of crowdfunding research. Information and Organization, 26(4), 101–115.

    Article  Google Scholar 

  • Gompers, P., & Lerner, J. (2001). The money of invention: How venture capital creates new wealth. Boston: Harvard Business School Press.

    Google Scholar 

  • Greenberg, J., & Mollick, E. R. (2016). Leaning in or leaning on? Gender, homophily, and activism in crowdfunding. Administrative Science Quarterly (forthcoming), available at https://ssrn.com/abstract=2462254. Accessed 3 Mar 2018.

  • Groshoff, D. (2016). Equity crowdfunding as economic development. Campbell Law Review, 38, 317–363.

    Google Scholar 

  • Groshoff, D., Urien, K. R., & Nguyen, A. (2014).Crowdfunding 6.0: Does the SEC's failure reveal the agency’s true mission to protect—solely accredited—investors? SSRN working paper, available https://ssrn.com/abstract=2483371. Accessed 3 Mar 2018.

  • Grundy, D., & Ohmer, C. (2016). German crowd-investing platforms: literature review and survey. Cogent Business & Management, 3(1), 1–20.

    Article  Google Scholar 

  • Grüner, H. P. & Siemroth, C. (2016). Crowdfunding, efficiency, and inequality. Journal of the European Economic Association (forthcoming), available at https://ssrn.com/abstract=2886401. Accessed 3 Mar 2018.

  • Guan, L. (2016). A short literature review on reward-based crowdfunding. Paper presented at the International Conference on Service Systems and Service Management (ICSSSM), June, Kunming, China.

  • Günther, C., Hienerth, C., & Riar, F. (2015). The due diligence of crowdinvestors: thorough evaluation or gut feeling only? Academy of Management Proceedings, No. 1.

  • Günther, C., Johan, S., & Schweizer, D. (2018). Is the crowd sensitive to distance?—How investment decisions differ by investor type. Small Business Economics, 50(2), 289–305.

    Article  Google Scholar 

  • Hagedorn, A., & Pinkwart, A. (2016). The financing process of equity-based crowdfunding: an empirical analysis. In D. Brüntje & O. Gaijda (Eds.), Crowdfunding in Europe (pp. 71–85). Switzerland: Springer International Publishing.

    Chapter  Google Scholar 

  • Harrison, R. T., & Mason, C. M. (2007). Does gender matter? Women business angels and the supply of entrepreneurial finance. Entrepreneurship: Theory and Practice, 31(3), 445–472.

    Google Scholar 

  • Harrison, R. T., Mason, C., & Smith, D. (2015). Heuristics, learning and the business angel investment decision-making process. Entrepreneurship & Regional Development, 27(9–10), 527–554.

    Article  Google Scholar 

  • Harzing, A. W. K., & Van der Wal, R. (2008). Google scholar as a new source for citation analysis. Ethics in science and environmental politics, 8(1), 61–73.

    Article  Google Scholar 

  • Heath, C., & Tversky, A. (1991). Preference and belief: ambiguity and competence in choice under uncertainty. Journal of Risk and Uncertainty, 4, 5–28.

    Article  Google Scholar 

  • Hechavarria, D. M., & Ingram, A. (2014). A review of the entrepreneurial ecosystem and the entrepreneurial society in the United States:aAn exploration with the global entrepreneurship monitor dataset. Journal of Business and Entrepreneurship, 26(1), 1–37.

    Google Scholar 

  • Hervé, F., Manthé, E., Sannajust, A., & Schwienbacher, A. (2017). Determinants of individual investment decisions in investment-based crowdfunding. SSRN working paper, available at https://ssrn.com/abstract=2746398. Accessed 5 June 2018.

  • Ho, J. K. S. (2016). Regulating equity crowdfunding in Hong Kong: appreciating Anglo-American experiences and recognizing local conditions. Common Law World Review, 45(4), 319–339.

    Article  Google Scholar 

  • Hobbs, J., Grigore, G., & Molesworth, M. (2016). Success in the management of crowdfunding projects in the creative industries. Internet Research, 26(1), 146–166.

    Article  Google Scholar 

  • Hogan, J. (2014). Like oil and water: equity crowdfunding and securities regulation. Lewis & Clark Law Review, 18(4), 1091–1116.

    Google Scholar 

  • Hornuf, L., & Neuenkirch, M. (2017). Pricing shares in equity crowdfunding. Small Business Economics, 48(4), 795–811.

    Article  Google Scholar 

  • Hornuf, L., & Schmitt, M. (2016). Does a local bias exist in equity crowdfunding? The impact of investor types and portal design. SSRN working paper, available at http://ssrn.com/abstract=2801170. Accessed 3 Mar 2018.

  • Hornuf, L., & Schmitt, M. (2017). Equity crowdfunding in Germany and the UK: follow-up funding and firm survival. SSRN working paper, available at https://ssrn.com/abstract=3020820. Accessed 5 June 2018.

  • Hornuf, L., & Schwienbacher, A. (2014). The Emergence of crowdinvesting in Europe: with an in-depth analysis of the German market. SSRN working paper, available at https://ssrn.com/abstract=2481994. Accessed 3 Mar 2018.

  • Hornuf, L., & Schwienbacher, A. (2015). Funding dynamics in crowdinvesting. SSRN working paper, available at https://ssrn.com/abstract=2612998. Accessed 3 Mar 2018.

  • Hornuf, L., & Schwienbacher, A. (2016). Crowdinvesting - angel investing for the masses? In C. Mason & H. Landström (Eds.), Handbook of research on business angels (pp. 381–397). Cheltenham: Edward Elgar.

    Chapter  Google Scholar 

  • Hornuf, L., & Schwienbacher, A. (2017). Should securities regulation promote equity crowdfunding? Small Business Economics, 49(3), 579–593.

    Article  Google Scholar 

  • Howard, J. A., & Sheth, J. N. (1969). The theory of buying behavior. New York: Wiley.

    Google Scholar 

  • Huang, L., & Pearce, J. L. (2015). Managing the unknowable: the effectiveness of early-stage investor gut feel in entrepreneurial investment decisions. Administrative Science Quarterly, 60(4), 634–670.

    Article  Google Scholar 

  • Isenberg, D. J. (2010). How to start an entrepreneurial revolution. Harvard Business Review, 88(6), 40–50.

    Google Scholar 

  • Itenberg, O., & Smith, E. E. (2017). Syndicated equity crowdfunding: the trade-off between deal access and conflicts of interest. Simon Business School working paper No. FR 17–06, available at https://ssrn.com/abstract=2933822. Accessed 8 June 2018.

  • Jeng, D. H. (2012). The JOBS Act: Rule 506, Crowdfunding, and the Balance between Efficient Capital Formation and Investor Protection. SSRN working paper, available at https://ssrn.com/abstract=2238624. Accessed 3 Mar 2018.

  • Jones, M. V., Coviello, N., & Tang, Y. K. (2011). International entrepreneurship research (1989–2009): a domain ontology and thematic analysis. Journal of Business Venturing, 26(6), 632–659.

    Article  Google Scholar 

  • Kahneman, D., & Tversky, A. (1979). Prospect theory: an analysis of decision under risk. Econometrica: Journal of the econometric society, 263–291.

  • Kang, M., Gao, Y., Wang, T., & Zheng, H. (2016). Understanding the determinants of funders’ investment intentions on crowdfunding platforms: a trust-based perspective. Industrial Management & Data Systems, 116(8), 1800–1819.

    Article  Google Scholar 

  • Keeper, T. (2016). Equity crowdfunding in New Zealand. A progressive experiment. SSRN working paper, available at https://ssrn.com/abstract=2844948. Accessed 3 Mar 2018.

  • Kim, H., & Moor, L. (2017). The case of crowdfunding in financial inclusion: a survey. Strategic Change, 26(2), 193–212.

    Article  Google Scholar 

  • Klöhn, L., & Hornuf, L. (2012). Crowdinvesting in Deutschland. Zeitschrift für Bankrecht und Bankwirtschaft, 24(4), 237–266.

    Article  Google Scholar 

  • Klöhn, L., Hornuf, L., & Schilling, T. (2016a). The regulation of crowdfunding in the German small investor protection act: content, consequences, critique, suggestions. European Company Law, 13(2), 56–66.

    Google Scholar 

  • Klöhn, L., Hornuf, L., & Schilling, T. (2016b). Financial contracting in crowdinvesting: lessons from the German Market. SSRN working paper, available at https://ssrn.com/abstract=2839041. Accessed 3 Mar 2018.

  • Kousha, K., & Thelwall, M. (2007). Sources of Google scholar citations outside the science citation index: a comparison between four science disciplines. Scientometrics, 74(2), 273–294.

    Article  Google Scholar 

  • Kshetri, N. (2015). Success of crowd-based online technology in fundraising: an institutional perspective. Journal of International Management, 21(2), 100–116.

    Article  Google Scholar 

  • Kumar, P., Langberg, N., & Zvilichovsky, D. (2015). (Crowd) Funding innovation: financing constraints, price discrimination, and welfare. SSRN working paper, available at https://ssrn.com/abstract=2600923. Accessed 3 Mar 2018.

  • Kuppuswamy, V., & Bayus, B. L. (2015). Crowdfunding creative ideas: the dynamics of project backers in Kickstarter. UNC Kenan-Flagler Research Paper, available at https://ssrn.com/abstract=2234765. Accessed 3 Mar 2018.

  • Langowitz, N., & Minniti, M. (2007). The entrepreneurial propensity of women. Entrepreneurship: Theory and Practice, 31(3), 341–364.

    Google Scholar 

  • Le Pendeven, B. (2016). Equity crowdfunding: impact of the innovation degree on fundraising campaigns. Paper presented at ICIE 2016-Proceedings of the 4th International Conference on Innovation and Entrepreneurship, January, Teheran.

  • Li, J. (2016). Equity crowdfunding in China: current practice and important legal issues. The Asian Business Lawyer, available at https://ssrn.com/abstract=2842752. Accessed 3 Mar 2018.

  • Li, X., Li, X., Tang, Y., Tang, Y., Yang, N., Yang, N., & Zhou, H. (2016). The value of information disclosure and lead investor in equity-based crowdfunding: an exploratory empirical study. Nankai Business Review International, 7(3), 301–321.

    Article  Google Scholar 

  • Lin, L. (2017). Managing the risks of equity crowdfunding: lessons from China. Journal of Corporate Law Studies, 17(2), 327–366.

    Article  Google Scholar 

  • Liñán, F., & Fayolle, A. (2015). A systematic literature review on entrepreneurial intentions: citation, thematic analyses, and research agenda. International Entrepreneurship and Management Journal, 11(4), 907–933.

    Article  Google Scholar 

  • Löher, J. (2016). The interaction of equity crowdfunding platforms and ventures: an analysis of the preselection process. Venture Capital: An International Journal of entrepreneurial finance, 19(1–2), 51–74.

    Google Scholar 

  • Lombardi, R., Trequattrini, R., & Russo, G. (2016). Innovative start-ups and equity crowdfunding. International Journal of Risk Assessment and Management, 19(1–2), 68–83.

    Article  Google Scholar 

  • Lounsbury, M., & Glynn, M. A. (2001). Cultural entrepreneurship: stories, legitimacy and the acquisition of resources. Strategic Management Journal, 22, 545–564.

    Article  Google Scholar 

  • Lukkarinen, A., Teich, J. E., Wallenius, H., & Wallenius, J. (2016). Success drivers of online equity crowdfunding campaigns. Decision Support Systems, 87, 26–38.

    Article  Google Scholar 

  • Macpherson, A., & Holt, R. (2007). Knowledge, learning, and small firm growth: a systematic review of the evidence. Research Policy, 36(2), 172–192.

    Article  Google Scholar 

  • Majumdar, A. B. (2015). Regulating equity crowdfunding in India—a response to SEBI's consultation paper. SSRN working paper, available at https://ssrn.com/abstract=2621488. Accessed 3 Mar 2018.

  • Malach, S., Malach, R., & Hedges, P. (2015). A balancing act: identifying stakeholder issues in the regulation of equity crowdfunding. Paper presented at the United States Association for Small Business and Entrepreneurship conference, January, Tampa.

  • Manzi, J. (2012). Uncontrolled: the surprising payoff of trial-and-error for business, politics, and society. New York: Basic Books.

    Google Scholar 

  • Marom, D., Robb, A., & Sade, O. (2016). Gender dynamics in crowdfunding (Kickstarter): evidence on entrepreneurs, investors, deals and taste-based discrimination. SSRN working paper, available at https://ssrn.com/abstract=2442954. Accessed 3 Mar 2018.

  • Martens, M. L., Jennings, J. E., & Jennings, P. D. (2007). Do the stories they tell get them the money they need? The role of entrepreneurial narratives in resource acquisition. Academy of Management Journal, 50(5), 1107–1132.

    Article  Google Scholar 

  • Martins Pereira, C. (2017). A brief analysis of the new Portuguese equity crowdfunding regime. Working Paper Càtedra Jean Monnet, the University of Barcelona, available at http://diposit.ub.edu/dspace/handle/2445/116448. Accessed 8 June 2018.

  • Mäschle, O. (2012a). Which information should entrepreneurs on German crowdinvesting-platforms disclose? Working paper, No. 127, Thünen-Series of Applied Economic Theory, Rostock, Germany.

  • Mäschle, O. (2012b). Rationing of excessive demand on crowdinvesting-platforms. Working paper, No. 126, Thünen-Series of Applied Economic Theory, Rostock, Germany.

  • Mäschle, O., & Dalvai, W. (2016). Rationing and screening in crowdinvesting-markets. Working paper, No. 142, Thünen-Series of Applied Economic Theory, Rostock, Germany.

  • Massolution (2015). 2015CF-Crowdfunding Industry Report. Retrieved from http://www.crowdsourcing.org/editorial/global-crowdfunding-market-to-reach-344b-in-2015-predicts-massolutions-2015cf-industry-report/45376. Accessed 8 Jan 2018.

  • McAllister Shepro, M. (2014). Keeping the crowd at bay: the practical implications of the SEC's new crowdfunding exemption. SSRN working paper, available at https://ssrn.com/abstract=2433225. Accessed 3 Mar 2018.

  • McGuire, E. (2016). Can equity crowdfunding and general solicitation mitigate the gender gap in entrepreneurship? Working paper, available at https://www.aeaweb.org/conference/2017/preliminary/paper/BnbDb56S. Accessed 9 Mar 2018.

  • McKenny, A. F., Allison, T. H., Ketchen, D. J., Short, J. C., & Ireland, R. D. (2017). How should crowdfunding research evolve? A survey of the entrepreneurship theory and practice editorial board. Entrepreneurship: Theory and Practice, 41(2), 291–304.

    Google Scholar 

  • Miglo, A. (2016). Crowdfunding: balancing imperfect information and moral hazard considerations. SSRN working paper, available at https://ssrn.com/abstract=2793631. Accessed 3 Mar 2018.

  • Minniti, M., Arenius, P., & Langowitz, N. (2005). 2004 global entrepreneurship monitor special topic report: women and entrepreneurship. Babson Park: Center for Women’s Leadership at Babson College.

    Google Scholar 

  • Mitchell, C. D. (2015). Charting a new revolution in equity crowdfunding: the rise of state crowdfunding regimes in response to the inadequacy of title III of the JOBS act. John Marshall Global Markets Law Journal, 3(2), 136–186.

    Google Scholar 

  • Mohammadi, A., & Shafi, K. (2018). Gender differences in the contribution patterns of equity-crowdfunding investors. Small Business Economics, 50(2), 275–287.

    Article  Google Scholar 

  • Mokhtarrudin, A., Masrurah, I. M. K., & Muhamad, S. C. R. (2017). Crowdfunding as a funding opportunity for youth start-ups in Malaysia. Pertanika Journal of Social Sciences & Humanities, 25, 139–154.

    Google Scholar 

  • Moritz, A., & Block, J. H. (2016). Crowdfunding: a literature review and research directions. In D. Brüntje & O. Gaijda (Eds.), Crowdfunding in Europe (pp. 25–53). Switzerland: Springer International Publishing.

    Chapter  Google Scholar 

  • Moritz, A., Block, J., & Lutz, E. (2015). Investor communication in equity-based crowdfunding: a qualitative-empirical study. Qualitative Research in Financial Markets, 7(3), 309–342.

    Article  Google Scholar 

  • Moysidou, K., & Spaeth, S. (2016). Cognition, emotion and perceived values in crowdfunding decision-making. Paper presented at the Open and User Innovation Conference, Boston, USA.

  • Murray, J. S. (2015). Financial market licensing and exemptions under New Zealand's financial markets conduct act 2013. Journal of Banking and Finance Law and Practice, 27(1), 98–102.

    Google Scholar 

  • Nascimento, M., & Querette, E. (2013). Crowdfunding: challenges and alternatives to financing the innovative entrepreneurship in Brazil. Paper presented at the 3rd Conference of the International Consortium of Studies on Innovation and Entrepreneurship, November, Rio de Janeiro, Brazil.

  • Nehme, M. (2017). The rise of crowd equity funding: where to now? International Journal of Law in Context, 13(3), 253–276.

    Article  Google Scholar 

  • Nevin, S., Gleasure, R., O’Reilly, P., Feller, J., Li, S., & Christoforo, J. (2017). Large crowds or large investments? How social identity influences the commitment of the crowd. Research in progress paper, available at http://aisel.aisnet.org/ecis2017_rip/30/. Accessed 6 June 2017.

  • Nitani, M., & Riding, A. (2017). On Crowdfunding success: firm and owner attributes and social networking. SSRN working paper, available at https://ssrn.com/abstract=2945081. Accessed 8 June 2018.

  • Oranburg, S. C. (2015). Bridgefunding: Crowdfunding and the market for entrepreneurial finance. Cornell Journal of Law & Public Policy, 25, 397–452.

    Google Scholar 

  • Pekmezovic, A., & Walker, G. R. D. (2015). Crowdfunding: solving the SME funding problem and democratising access to Capital, available at https://works.bepress.com/alma_pekmezovic/1/download/. Accessed 3 Mar 2018.

  • Pelizzon, L., Riedel, M., & Tasca, P. (2016). Classification of Crowdfunding in the Financial System. In P Tasca, T. Aste, L. Pelizzon, N. Perony (Eds.) Banking Beyond Banks and Money (pp. 5–16). New Economic Windows, Switzerland, Springer International Publishing.

  • Petticrew, M., & Roberts, H. (2006). Systematic reviews in the social sciences: apractical guide. Malden, MA: Blackwell Publishing Ltd..

    Book  Google Scholar 

  • Pierce-Wright, C. H. (2016). State equity crowdfunding and investor protection. Washington Law Review, 91(2), 847–886.

    Google Scholar 

  • Pittaway, L., & Cope, J. (2007). Entrepreneurship education: a systematic review of the evidence. International Small Business Journal, 25(5), 479–510.

    Article  Google Scholar 

  • Piva, E., & Rossi-Lamastra, C. (2017). Human capital signals and entrepreneurs’ success in equity crowdfunding. Small Business Economics, 1–20.

  • Polzin, F., Toxopeus, H., & Stam, E. (2018). The wisdom of the crowd in funding: information heterogeneity and social networks of crowdfunders. Small Business Economics, 50(2), 251–273.

    Article  Google Scholar 

  • Powell, M., & Ansic, D. (1997). Gender differences in risk behavior in financial decision-making: an experimental analysis. Journal of Economic Psychology, 18(6), 605–628.

    Article  Google Scholar 

  • Ralcheva, A., & Roosenboom, P. (2016). The role of certification for equity crowdfunding success. Paper presents at the 33rd International Conference of the French Finance Association, May, Liège.

  • Rossi, A., & Vismara, S. (2018). What do crowdfunding platforms do? A comparison between investment-based platforms in Europe. Eurasian Business Review, 8(1), 93–118.

    Article  Google Scholar 

  • Ryan, G. W., & Bernard, H. R. (2003). Techniques to identify themes. Field Methods, 15(1), 85–109.

    Article  Google Scholar 

  • Salomon, V. (2016). Emergent models of financial intermediation for innovative companies: from venture capital to crowdinvesting platforms in Switzerland. Venture Capital: An International Journal of Entrepreneurial Finance, 18(1), 21–41.

    Article  Google Scholar 

  • Sánchez-Fernández, R., & Iniesta-Bonillo, M. Á. (2007). The concept of perceived value: a systematic review of the research. Marketing Theory, 7(4), 427–451.

    Article  Google Scholar 

  • Schwienbacher, A. (2015). Entrepreneurial risk-taking in crowdfunding campaigns. SSRN working paper, available at https://ssrn.com/abstract=2506355. Accessed 3 Mar 2018.

  • Sherer, S. A., & Alter, S. (2004). Information systems risks and risk factors: are they mostly about information systems? Communications of the Association for Information Systems, 14(1), 29–64.

    Google Scholar 

  • Sheth, J. N., Newmann, B. I., & Gross, B. L. (1991). Why we buy what we buy: a theory of consumption values. Journal of Business Research, 22, 159–170.

    Article  Google Scholar 

  • Short, J. C., Ketchen, D. J., McKenny, A. F., Allison, T. H., & Ireland, R. D. (2017). Research on crowdfunding: reviewing the (very recent) past and celebrating the present. Entrepreneurship: Theory and Practice, 41(2), 149–160.

    Google Scholar 

  • Signori, A., & Vismara, S. (2016). Returns on investments in equity crowd-funding. SSRN working paper, available at https://ssrn.com/abstract=2765488. Accessed 3 Mar 2018.

  • Signori, A., & Vismara, S. (2018). Does success bring success? The post-offering lives of equity-crowdfunded firms. Journal of Corporate Finance, 50, 575–591.

    Article  Google Scholar 

  • Smith, D. (2013). Navigating risk when entering and participating in a business ecosystem. Technology Innovation Management Review, 3(5), 25–33.

    Article  Google Scholar 

  • Sullivan, M. K., & Miller, A. (1996). Segmenting the informal venture capital market: economic, hedonistic, and altruistic investors. Journal of Business Research, 36(1), 25–35.

    Article  Google Scholar 

  • Thorpe, R., Holt, R., Macpherson, A., & Pittaway, L. (2005). Using knowledge within small and medium-sized firms: a systematic review of the evidence. International Journal of Management Reviews, 7(4), 257–281.

    Article  Google Scholar 

  • Thürridl, C., & Kamleitner, B. (2016). What goes around comes around? Rewards as strategic assets in crowdfunding. California Management Review, 58(2), 88–110.

    Article  Google Scholar 

  • Tomboc, G. F. B. (2013). The lemons problem in crowdfunding. John Marshall Journal of Information, Technology & Privacy Law, 30, 253–280.

    Google Scholar 

  • Tranfield, D., Denyer, D., & Smart, P. (2003). Toward a methodology for developing evidence-informed management knowledge by means of systematic review. BJM: British Journal of Management, 14(3), 207–222.

    Google Scholar 

  • Tsai, C. H. R. (2015). The changing regulation of equity crowdfunding in Taiwan: a comparative and public choice approach. Boston University International Law Journal (forthcoming).

  • Tsai, C. H. R. (2016). Legal transplantation or legal innovation? Equity-crowdfunding regulation in Taiwan after title III of the U.S. JOBS act. Boston University International Law Journal, 34(2), 233–277.

    Google Scholar 

  • Turan, S. S. (2015). Stakeholders in equity-based crowdfunding: respective risks over the equity crowdfunding lifecycle. Journal of Financial Innovation, 1(2), 141–151.

    Google Scholar 

  • Urban, G. L., Amyx, C., & Lorenzon, A. (2009). Online-trust: state of the art, new frontiers, and research potential. Journal of Interactive Marketing, 23(2), 179–190.

    Article  Google Scholar 

  • Urien, K., & Groshoff, D. (2013). An essay inquiry: will the Jobs Act's transformative regulatory regime for equity offerings cost investment Bankers' Jobs. Texas A&M Law Review, 1, 559–582.

    Google Scholar 

  • Vismara, S. (2016). Equity retention and social network theory in equity crowdfunding. Small Business Economics, 46(4), 579–590.

    Article  Google Scholar 

  • Vismara, S. (2018a). Sustainability in equity crowdfunding. technological forecast and social change (forthcoming), available at https://ssrn.com/abstract=3135935. Accessed 1 June 2018.

  • Vismara, S. (2018b). Information cascades among investors in equity crowdfunding. Entrepreneurship Theory and Practice, 42(3), 467–497.

    Article  Google Scholar 

  • Vismara, S. (2018c). Signaling to overcome inefficiencies in crowdfunding markets. In D. Cumming & L. Hornuf (Eds.), The economics of crowdfunding (pp. 29–56). Cham: Palgrave Macmillan.

    Chapter  Google Scholar 

  • Vismara, S., Benaroio, D., & Carne, F. (2017). Gender in entrepreneurial finance: Matching investors and entrepreneurs in equity crowdfunding. In A. Link (Ed.), Gender and entrepreneurial activity (pp. 271–288). Cheltenham: Edward Elgar.

    Google Scholar 

  • Vulkan, N., Åstebro, T., & Sierra, M. F. (2016). Equity crowdfunding: a new phenomena. Journal of Business Venturing Insights, 5, 37–49.

    Article  Google Scholar 

  • Wallmeroth, J. (2016). Investor behavior in crowdinvesting. SSRN working paper, available at https://ssrn.com/abstract=2881394. Accessed 3 Mar 2018.

  • Wallmeroth, J., Wirtz, P., & Groh, A. P. (2018). Venture capital, angel financing, and crowdfunding of entrepreneurial ventures: a literature review. Foundations and Trends in Entrepreneurship, 14(1), 1–129.

    Article  Google Scholar 

  • Welch, I. (1992). Sequential sales, learning, and cascades. Journal of Finance, 47, 695–732.

    Article  Google Scholar 

  • Welter, F. (2012). All you need is trust? A critical review of the trust and entrepreneurship literature. International Small Business Journal, 30(3), 193–212.

    Article  Google Scholar 

  • Whitbeck, J. B. (2012). The JOBS Act of 2012: The Struggle Between Capital Formation and Investor Protections. SSRN working paper, available at https://ssrn.com/abstract=2149744. Accessed 3 Mar 2018.

  • Wilson, K. E., & Testoni, M. (2014). Improving the role of equity crowdfunding in Europe's capital markets. SSRN working paper, available https://ssrn.com/abstract=2502280. Accessed 3 Mar 2018.

  • Wroldsen, J. (2016). Crowdfunding investment contracts. Virginia Law & Business Review (forthcoming), available at https://ssrn.com/abstract=2844771. Accessed 3 Mar 2018.

  • Ying, H. (2015). Regulation of equity crowdfunding in Singapore. Singapore Journal of Legal Studies, 46–76.

  • Younkin, P., & Kashkooli, K. (2016). What problems does crowdfunding solve? California Management Review, 58(2), 20–43.

    Article  Google Scholar 

  • Zhang, J., & Liu, P. (2012). Rational herding in microloan markets. Management Science, 58(5), 892–912.

    Article  Google Scholar 

  • Zunino, D., van Praag, M., & Dushnitsky, G. (2017). Badge of Honor or Scarlet Letter? Unpacking Investors’ Judgment of Entrepreneurs’ Past Failure. SSRN working paper, available at https://ssrn.com/abstract=3041273. Accessed 8 June 2018.

Download references

Author information

Authors and Affiliations

  1. University of Wuppertal, Gaußstraße 20, 42119, Wuppertal, Germany

    Kazem Mochkabadi & Christine K. Volkmann

Authors
  1. Kazem Mochkabadi
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Christine K. Volkmann
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Kazem Mochkabadi.

Appendix

Appendix

Table 12 Inclusion criteria
Full size table
Table 13 Exclusion criteria
Full size table
Table 14 Research protocol
Full size table

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Mochkabadi, K., Volkmann, C.K. Equity crowdfunding: a systematic review of the literature. Small Bus Econ 54, 75–118 (2020). https://doi.org/10.1007/s11187-018-0081-x

Download citation

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11187-018-0081-x

Keywords

JEL classification

Search

Navigation