Coakley, Jerry and Cumming, Douglas and Lazos, Aristogenis and Vismara, Silvio (2025) Lead Investor Nominee in Equity Crowdfunding. British Journal of Management. DOI https://doi.org/10.1111/1467-8551.12918
Coakley, Jerry and Cumming, Douglas and Lazos, Aristogenis and Vismara, Silvio (2025) Lead Investor Nominee in Equity Crowdfunding. British Journal of Management. DOI https://doi.org/10.1111/1467-8551.12918
Coakley, Jerry and Cumming, Douglas and Lazos, Aristogenis and Vismara, Silvio (2025) Lead Investor Nominee in Equity Crowdfunding. British Journal of Management. DOI https://doi.org/10.1111/1467-8551.12918
Abstract
The lead investor nominee structure in equity crowdfunding (ECF) integrates the strengths of the pure ECF and angel ECF models. By committing their own capital, lead investors address two key challenges: mitigating adverse selection through thorough due diligence and reducing moral hazard by monitoring the firm post‐campaign to secure returns. The digital nominee governance structure ensures equal ownership and voting rights for all investors, resolving potential conflicts between angels, accredited investors and the crowd. This model fosters collaboration between professional investors and the crowd, leveraging their respective strengths. Analysis of extensive UK data shows that nominee ECF campaigns outperform direct ownership campaigns in both the short and long term. These findings provide valuable governance insights for platform managers and policymakers.
Item Type: | Article |
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Divisions: | Faculty of Social Sciences Faculty of Social Sciences > Essex Business School Faculty of Social Sciences > Essex Business School > Essex Finance Centre |
SWORD Depositor: | Unnamed user with email elements@essex.ac.uk |
Depositing User: | Unnamed user with email elements@essex.ac.uk |
Date Deposited: | 28 Jul 2025 15:20 |
Last Modified: | 28 Jul 2025 15:20 |
URI: | http://repository.essex.ac.uk/id/eprint/41014 |
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