Entrepreneurship and Equity Crowdfunding: Does It Matter?

Abstract

This study aims to explore how entrepreneurship, i.e. the three well-known dimensions of entrepreneurial orientation (EO) (innovativeness, risk taking and proactiveness), affects equity crowdfunding (ECF) performance. Many contributions in the entrepreneurship literature suggested that the entrepreneurial process is incomplete with the creation of a new venture. In this vein, the present paper focuses on the company’s fundraising capability, a stage that follow the establishment of a new business. Empirical regression analyses were performed and the sample consists of 134 projects collected from seven Italian platforms. Interesting successful drivers, belonging to the EO sphere, emerge from the study. Findings show statistically significant influence of the three exploratory variables: product innovation (as expression of innovativeness) and planning (as expression of proactiveness) positively affect ECF performance, while equity offered (as expression of risk taking propensity) has a negative impact. Scholars have little knowledge about the role of entrepreneurship in the ECF context, this study sheds some light on the importance of entrepreneurial aspects. The originality of this study lies both in the entrepreneurial framework and in the factors analyzed. The insights could have interesting implications for entrepreneurs, platform managers, investors and policy makers.