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Who invests why? An analysis of investment decisions in B2B or B2C equity crowdfunding projects

Author

Listed:
  • Tanja Jovanović
  • Alexander Brem
  • Kai-Ingo Voigt

Abstract

Crowdfunding is an interesting phenomenon in the field of financing, as it is evolving in theory and practice. However, most research is focused on non-equity-based campaigns. Hence, we shed light on a yet under researched aspect: B2B and B2C companies reaching for equity-based crowdfunding. We chose an empirical approach and conducted a quantitative study among almost 300 participants to reveal the difference between the funding decisions for startups located in either B2B or B2C markets. Our results show that differences in investments between B2B and B2C firms do exist, revealing that other success factors are necessary in those cases. Moreover, we find that the involvement of the investor as lead user has relevance for the decision to invest in both cases. We conclude with implications for theory and practice and give suggestions for future research.

Suggested Citation

  • Tanja Jovanović & Alexander Brem & Kai-Ingo Voigt, 2019. "Who invests why? An analysis of investment decisions in B2B or B2C equity crowdfunding projects," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 37(1), pages 71-86.
    • Handle: RePEc:ids:ijesbu:v:37:y:2019:i:1:p:71-86
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    Citations

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    Cited by:

    1. Skare, Marinko & Gavurova, Beata & Polishchuk, Volodymyr, 2023. "A decision-making support model for financing start-up projects by venture capital funds on a crowdfunding platform," Journal of Business Research, Elsevier, vol. 158(C).
    2. Khaoula Behi & Nivedita Agarwal & Alexander Brem, 2020. "An Analysis of a Crowdfunding System in North Africa Based on the Actor-Network Theory," International Journal of Global Business and Competitiveness, Springer, vol. 15(1), pages 23-34, June.
    3. Kristin Hommel & Peter M. Bican, 2020. "Digital Entrepreneurship in Finance: Fintechs and Funding Decision Criteria," Sustainability, MDPI, vol. 12(19), pages 1-18, September.

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