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The new investment landscape: Equity crowdfunding

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  • Burze Yasar

Abstract

Equity crowdfunding has emerged as a new landscape for financing ideas and innovations. While a number of countries has come a long way and developed equity crowdfunding platforms, a number of countries is taking it more slowly. This paper reviews how equity crowdfunding platforms function, the regulatory approaches around the world and academic contributions on signaling, success factors and social financing at equity crowdfunding platforms. The review suggests that further research may dive deeper into the socio-economic significance of equity crowdfunding and whether equity crowdfunding complements or substitutes traditional equity financing. Research contributions on the dynamics of equity crowdfunding in different geographical regions, motivations of funders, matching of funders and entrepreneurs, effects of regulations and evolution of potential campaign success factors are very critical for the development of the field. Despite debates about risks, equity crowdfunding seems to be a promising venue for financing entrepreneurs, democratizing demand and supply side of investments and contributing to economic growth.

Suggested Citation

  • Burze Yasar, 2021. "The new investment landscape: Equity crowdfunding," Central Bank Review, Research and Monetary Policy Department, Central Bank of the Republic of Turkey, vol. 21(1), pages 1-16.
  • Handle: RePEc:tcb:cebare:v:21:y:2021:i:1:p:1-16
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    Citations

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    Cited by:

    1. Yasar, Burze & Sevilay Yılmaz, Işıl & Hatipoğlu, Nurullah & Salih, Aslıhan, 2022. "Stretching the success in reward-based crowdfunding," Journal of Business Research, Elsevier, vol. 152(C), pages 205-220.
    2. Sophie Pommet & Alexandra Rufini & Dominique Torre, 2024. "The role of lead investors in equity crowdfunding campaigns with a secondary market," Small Business Economics, Springer, vol. 63(1), pages 243-273, June.
    3. Kanayo Ogwu & Patrick Hickey & Okeoma John-Paul Okeke & Adnan ul Haque & Elias Pimenidis & Eugene Kozlovski, 2022. "An Integrated Online/Offline Social Network-Based Model for Crowdfunding Support in Developing Countries: The Case of Nigeria," Sustainability, MDPI, vol. 14(15), pages 1-21, July.
    4. Amina Rizwan & Faisal Mustafa, 2022. "Fintech Attaining Sustainable Development: An Investor Perspective of Crowdfunding Platforms in a Developing Country," Sustainability, MDPI, vol. 14(12), pages 1-17, June.
    5. Ruxandra DINULESCU & Florin PUCHEANU & Alexandru-Mihai BUGHEANU, 2021. "Traditional Investing Vs New Trends: A Review Of The Investment Landscape In Transition Towards Industry 4.0," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 15(1), pages 541-553, November.
    6. Burze Yaşar, 2021. "Impact investing: A review of the current state and opportunities for development," Istanbul Business Research, Istanbul University Business School, vol. 50(1), pages 177-196, May.
    7. Junjuan Du, 2023. "Rational or Impulsive? Early Backers’ Investment Behavior in Agri-Food Crowdfunding from 4P–4C Perspectives," SAGE Open, , vol. 13(3), pages 21582440231, August.
    8. Cao, Jianhong & Law, Siong Hook & Samad, Abdul Rahim Abdul & Mohamad, Wan Norhidayah W., 2023. "Internal mechanism analysis of the financial vanishing effect on green growth: Evidence from China," Energy Economics, Elsevier, vol. 120(C).
    9. Hu, Jing & Zhong, Lejia & Qiao, Jingyuan, 2024. "Equity pledge and debt financing of listed companies," Finance Research Letters, Elsevier, vol. 59(C).
    10. Maran, Raluca, 2022. "Improving MSMEs’ access to start-up financing in ASEAN countries," MPRA Paper 114501, University Library of Munich, Germany.
    11. Wang, Linqiang & Feng, Xiuhuan & Zang, Luning, 2024. "Does risk perception influence individual investors' crowdfunding investment decision-making behavior in the metaverse tourism?," Finance Research Letters, Elsevier, vol. 62(PA).

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