Coakley, Jerry and Lazos, Aristogenis and Liñares-Zegarra, Jose (2022) Strategic entrepreneurial choice between competing crowdfunding platforms. The Journal of Technology Transfer, 47 (6). pp. 1794-1824. DOI https://doi.org/10.1007/s10961-021-09891-0
Coakley, Jerry and Lazos, Aristogenis and Liñares-Zegarra, Jose (2022) Strategic entrepreneurial choice between competing crowdfunding platforms. The Journal of Technology Transfer, 47 (6). pp. 1794-1824. DOI https://doi.org/10.1007/s10961-021-09891-0
Coakley, Jerry and Lazos, Aristogenis and Liñares-Zegarra, Jose (2022) Strategic entrepreneurial choice between competing crowdfunding platforms. The Journal of Technology Transfer, 47 (6). pp. 1794-1824. DOI https://doi.org/10.1007/s10961-021-09891-0
Abstract
This paper investigates strategic entrepreneurial choice between the UK Big 3 platforms–Crowdcube, Seedrs and SyndicateRoom–that exemplify the three main equity crowdfunding (ECF) shareholder structures identified in the literature. ECF has become a strategic choice for both entrepreneurs and angel and venture capital funds as it offers mutually beneficial advantages to both, especially under the co-investment ECF model where these funds co-invest alongside the crowd. The multinomial probit results show that large founder teams are more likely to choose the co-investment model (SyndicateRoom) but are less likely to opt for the nominee ownership structure (Seedrs). Although less heterogeneous teams are more likely to choose the Seedrs and Crowdcube ownership structures, our results suggest that the probability of choosing the co-investment model (SyndicateRoom) monotonically increases as teams become more heterogeneous. The conclusion is that larger and heterogeneous teams are more likely to raise ECF funds from campaigns explicitly involving professional investors.
Item Type: | Article |
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Uncontrolled Keywords: | Equity crowdfunding; Founder team; Platforms; Shareholder structures |
Divisions: | Faculty of Social Sciences Faculty of Social Sciences > Essex Business School |
SWORD Depositor: | Unnamed user with email elements@essex.ac.uk |
Depositing User: | Unnamed user with email elements@essex.ac.uk |
Date Deposited: | 11 Nov 2021 14:09 |
Last Modified: | 16 May 2024 20:57 |
URI: | http://repository.essex.ac.uk/id/eprint/31344 |
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Filename: Coakley2021_Article_StrategicEntrepreneurialChoice.pdf
Licence: Creative Commons: Attribution 3.0