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What do we know about the choices of entrepreneurs before the equity crowdfunding campaign?

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  • Sandra Correia

    (University of Porto)

  • Miguel Sousa

    (University of Porto)

  • Elísio Brandão

    (University of Porto)

Abstract

This literature survey focuses on the pre-investment phase of equity crowdfunding, encompassing three key areas: (i) a comparative analysis of equity crowdfunding (ECF) in relation to traditional sources of entrepreneurial funding, such as venture capital and business angels; (ii) a discussion on why and when entrepreneurs prefer ECF; and (iii) an in-depth examination of the diverse models of ECF platforms. This paper is relevant for both practice and research. It can help entrepreneurs to identify under what circumstances ECF might be preferable to traditional sources of start-up funding and which platform model best suits their needs. It is also relevant for research because, besides providing an organized summary of the literature on this new way of financing start-ups, it also identifies some inconsistencies and gaps in the existing literature, providing some clues for further investigations.

Suggested Citation

  • Sandra Correia & Miguel Sousa & Elísio Brandão, 2024. "What do we know about the choices of entrepreneurs before the equity crowdfunding campaign?," Small Business Economics, Springer, vol. 63(4), pages 1471-1501, December.
    • Handle: RePEc:kap:sbusec:v:63:y:2024:i:4:d:10.1007_s11187-023-00868-x
    DOI: 10.1007/s11187-023-00868-x
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    More about this item

    Keywords

    Equity crowdfunding; Systematic literature review; Entrepreneurial finance;
    All these keywords.

    JEL classification:

    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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