The evolution and adoption of equity crowdfunding: entrepreneur and investor entry into a new market

• DOI: 10.1007/s11187-018-0009-5
• Publication Date: 2018-02-28T02:17:54Z
• Authors: Saul Estrin; Daniel Gozman; Susanna Khavul
• Keywords: Equity crowdfunding; Equity; Entrepreneurial finance

Equity crowdfunding (ECF) offers entrepreneurs an online social media marketplace where they can access numerous potential investors who, in exchange for ownership stake, may supply them with finance. In this paper, we describe the evolution of market UK. Using inductive qualitative longitudinal research design, analyse emerging views and towards ECF. Our interviewees include large small-scale investors, as well participants who have chosen not to invest or raise funds via We find that financial flows UK ECF platforms, nearly half a billion GBP since 2011, probably been largely incremental traditional sources early stage entrepreneurial Moreover, our indicates most part, appear understand appropriately evaluate risks are bearing; investments perceived high risk, return component within individuals' portfolios. Investors also use their communication peers platform learning tool. On entrepreneurs' side, allows test products, develop brand, build loyal customer base turn customers into investors. conclude policymakers, support locally appropriate regulatory framework, could equity one choices available looking start grow ventures.