A Green flag over mobile industry start-ups: Human capital and past investors as investment signals

Jungkook An, Woojin Jung, Hee Woong Kim

Research output: Contribution to conferencePaper

Abstract

Crowdfunding and online start-up platforms are becoming important communication tools for startups and investors. Existing literatures on online start-up platforms usually focus on reward-based crowdfunding platform, which do not offer any equity to backers. In addition, there have not been many empirical researches about equity-based crowdfunding due to the novelty of the regulation. This study analyzes the association between funding amount and early stage start-ups' underlying characteristics, the type of past investors, and influence of investors in the context of equity-based crowdfunding. The distinction of our research is the aspect of approach that we use population data from online start-up platform for the mobile industry. We find that start-up's funding outcome is positively related to start-up's human capital and pure investors. Moreover, our study extends theoretical understanding of the importance of human capital and past investors in start-up, and also contributes to the entrepreneurship literature by examining creditable signals for early stage start-up investment.

Original languageEnglish
Publication statusPublished - 2015
Event19th Pacific Asia Conference on Information Systems, PACIS 2015 - Singapore, Singapore
Duration: 2015 Jul 52015 Jul 9

Other

Other19th Pacific Asia Conference on Information Systems, PACIS 2015
CountrySingapore
CitySingapore
Period15/7/515/7/9

All Science Journal Classification (ASJC) codes

  • Information Systems

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    An, J., Jung, W., & Kim, H. W. (2015). A Green flag over mobile industry start-ups: Human capital and past investors as investment signals. Paper presented at 19th Pacific Asia Conference on Information Systems, PACIS 2015, Singapore, Singapore.