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 |
|---|---|
| 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 |
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All Science Journal Classification (ASJC) codes
- Sociology and Political Science
- Information Systems and Management
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Investigating signals on equity crowdfunding : Human capital, earlier investors, and social capital. / An, Jungkook; Kim, Hee Woong.
In: Asia Pacific Journal of Information Systems, Vol. 29, No. 2, 01.06.2019, p. 283-307.Research output: Contribution to journal › Article
TY - JOUR
T1 - Investigating signals on equity crowdfunding
T2 - Human capital, earlier investors, and social capital
AU - An, Jungkook
AU - Kim, Hee Woong
PY - 2019/6/1
Y1 - 2019/6/1
N2 - 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.
AB - 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.
UR - http://www.scopus.com/inward/record.url?scp=85068612924&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=85068612924&partnerID=8YFLogxK
U2 - 10.14329/apjis.2019.29.2.283
DO - 10.14329/apjis.2019.29.2.283
M3 - Article
AN - SCOPUS:85068612924
VL - 29
SP - 283
EP - 307
JO - Asia Pacific Journal of Information Systems
JF - Asia Pacific Journal of Information Systems
SN - 2288-5404
IS - 2
ER -