Drivers of fundraising success in equity crowdfunding

Using an unique hand-collected database of 1,256 campaigns from the two major platforms of equity crowdfunding in the United Kingdom, between 2015 and 2018, we find that the factors that most influence the campaign success are: (i) the quality of the project, signalized by equity retention and the presence of a large investor; (ii) the information disclosure and (iii) the early investments. There is no evidence economic potential of the firm are relevant for investor decisions. Investors probably use other signals (than growth and profitability perspectives) to evaluate the economic potential of firms and project quality.