Abstract
Although crowdfunding has emerged as a promising route to fundraising success, little is known about the specifics of equity-based crowdfunding. Using a data set of 1,111 start-ups with investment funding totaling over $4.67 billion, we analyzed the association between a start-up's underlying characteristics and its funding outcome. We found that a start-up's funding outcome is positively associated with its human capital, but negatively associated with earlier investors' business experience. Furthermore, our analyses revealed that investors have higher levels of social capital are a noise signal to later investors. These findings shed light on the critical role of human capital, investors' experience, and social capital as credible signals for start-up investment in equity crowdfunding.
Original language | English |
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Pages (from-to) | 283-307 |
Number of pages | 25 |
Journal | Asia Pacific Journal of Information Systems |
Volume | 29 |
Issue number | 2 |
DOIs | |
Publication status | Published - 2019 Jun 1 |
Bibliographical note
Publisher Copyright:© 2013 The Korean Society of Management Information Systems.
All Science Journal Classification (ASJC) codes
- Sociology and Political Science
- Information Systems and Management