Search Results (2)

This research provides the first deep and empirical look into Brazil’s increasing equity crowdfunding, or crowdinvest, market, and examines its peculiarities. It is a pioneering work dedicated to understanding which characteristics most impact the success of offers in the country, and whether there is any representative movement pointing to the inclusion of gender, firm age, and location or participation of small investors. We employ descriptive and quantitative research techniques and analyses all the offerings derived through this mechanism from 1 January 2017 to 31 December 2020—totaling 234 operations, considering successful offers (the ones that received investment) and unsuccessful offers (those that failed in raising funds), registered by 24 platforms in the country according to CVM (Comissão de Valores Mobiliários), the Brazilian SEC, under regulation Instruction 588. Furthermore, we use empirical and publicly available data from several sources. The findings reveal that mutual offers are more attractive to investors than those of equity, impacting the dependent variable of success. Besides this, firm location is the only inclusion aspect with representativeness among the independent variables tested. The main contributions of the research lie in providing the first empirical study that (1) consolidates a consistent database of the equity crowdfunding industry in Brazil, (2) reveals the role of crowdinvest in Brazil, related to bank credit to SMEs, and (3) provides recommendations to the main stakeholders that can improve the whole ecosystem. Full article

The transformation of the energy system is among the most relevant topics of the current public debate in the German-speaking realm. Crowdfunding is suitable for promoting sustainable development, such as financing renewable energies. We investigate success determinants of financial-return crowdfunding to understand how this financing technique can contribute to realizing sustainable development, such as the energy transition. We conduct a cross-platform study and consider sustainably oriented campaigns to answer two research questions: First, what determinants influence financial-return crowdfunding success? Second, how does a sustainable orientation affect these success determinants? We rely on signaling theory to investigate the effect of quality signals. We consider four meta-platforms that aggregate campaigns with sustainable and other funding purposes, obtaining a dataset of 434 financial-return crowdfunding campaigns, mainly from Austria and Germany. We use hierarchical linear regression models for our statistical analysis. Our findings indicate that sustainable orientation alone does not significantly affect crowdfunding success. Entrepreneurs can increase their chances of campaign success by raising the interest rate unless their campaign has a sustainable orientation. In sustainably oriented campaigns, the effect of the interest rate is compensated. Finally, we find no significant evidence suggesting that the campaign duration affects sustainable or non-sustainable crowdfunding success. Full article