The role of competition on equity crowdfunding

Sandra Correia; Miguel Sousa; Elísio Brandão

doi:10.1007/s10961-024-10145-y

The role of competition on equity crowdfunding

Sandra Correia^*, Miguel Sousa, Elísio Brandão

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

Abstract

Our study investigates competition’s impact on ECF campaigns, analyzing 37,201 daily observations from 1081 campaigns. While we found that the number of competing campaigns does not significantly influence the likelihood of funding, our daily analysis reveals its effect on campaign performance, impacting investors participation and funds raised. Additionally, more competitors reduce final number of investors. Furthermore, blockbuster projects from other industries have an adverse cannibalization effect, lowering campaign success probability. These findings emphasize the role of the competitive landscape in guiding entrepreneurs’ strategic decisions to improve the prospects of ECF campaigns success.

Original language	English
Number of pages	45
Journal	Journal of Technology Transfer
DOIs	https://doi.org/10.1007/s10961-024-10145-y
Publication status	Accepted/In press - 9 Oct 2024
Externally published	Yes

Keywords

Alternative finance
Competition
Equity crowdfunding
G23
L26

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1007/s10961-024-10145-yLicence: CC BY

Cite this

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title = "The role of competition on equity crowdfunding",

abstract = "Our study investigates competition{\textquoteright}s impact on ECF campaigns, analyzing 37,201 daily observations from 1081 campaigns. While we found that the number of competing campaigns does not significantly influence the likelihood of funding, our daily analysis reveals its effect on campaign performance, impacting investors participation and funds raised. Additionally, more competitors reduce final number of investors. Furthermore, blockbuster projects from other industries have an adverse cannibalization effect, lowering campaign success probability. These findings emphasize the role of the competitive landscape in guiding entrepreneurs{\textquoteright} strategic decisions to improve the prospects of ECF campaigns success.",

keywords = "Alternative finance, Competition, Equity crowdfunding, G23, L26",

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year = "2024",

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AU - Correia, Sandra

AU - Sousa, Miguel

AU - Brandão, Elísio

N1 - Publisher Copyright: © The Author(s) 2024.

PY - 2024/10/9

Y1 - 2024/10/9

N2 - Our study investigates competition’s impact on ECF campaigns, analyzing 37,201 daily observations from 1081 campaigns. While we found that the number of competing campaigns does not significantly influence the likelihood of funding, our daily analysis reveals its effect on campaign performance, impacting investors participation and funds raised. Additionally, more competitors reduce final number of investors. Furthermore, blockbuster projects from other industries have an adverse cannibalization effect, lowering campaign success probability. These findings emphasize the role of the competitive landscape in guiding entrepreneurs’ strategic decisions to improve the prospects of ECF campaigns success.

AB - Our study investigates competition’s impact on ECF campaigns, analyzing 37,201 daily observations from 1081 campaigns. While we found that the number of competing campaigns does not significantly influence the likelihood of funding, our daily analysis reveals its effect on campaign performance, impacting investors participation and funds raised. Additionally, more competitors reduce final number of investors. Furthermore, blockbuster projects from other industries have an adverse cannibalization effect, lowering campaign success probability. These findings emphasize the role of the competitive landscape in guiding entrepreneurs’ strategic decisions to improve the prospects of ECF campaigns success.

KW - Alternative finance

KW - Competition

KW - Equity crowdfunding

KW - G23

KW - L26

UR - http://www.scopus.com/inward/record.url?scp=85205886464&partnerID=8YFLogxK

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M3 - Article

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SN - 0892-9912

JO - Journal of Technology Transfer

JF - Journal of Technology Transfer

ER -

The role of competition on equity crowdfunding

Abstract

Keywords

UN SDGs

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