Equity crowdfunding: Beyond financial innovation

Abstract

Often equity crowdfunding is just considered as a new viable method of financing beyond the traditional financial system. However, considering equity crowdfunding only within the financial sphere and as a financial innovation is very limiting and does not represent the reality. Equity crowdfunding innovation is not only a financial innovation; it encompasses many other features that make equity crowdfunding so innovative. The financial sphere is only a part of the innovation that interacts on different levels with other relevant features, thus creating synergies and a unique model. The purpose of this article is to analyse the most relevant aspects of equity crowdfunding beyond the obvious financial sphere.