The IRMA Community
Newsletters
Research IRM
Click a keyword to search titles using our InfoSci-OnDemand powered search:
|
Characteristics of Successful Securities Crowdfunding Campaigns in the United States
|
|
Author(s): William Frank Wright (University of Illinois at Urbana-Champaign, USA)and Margaret MacFarlane Wright (University of Illinois at Urbana-Champaign, USA)
Copyright: 2021
Pages: 35
Source title:
Multidisciplinary Approaches to Crowdfunding Platforms
Source Author(s)/Editor(s): Carla Sofia Vicente Negrão (University of Coimbra, Portugal)and João António Furtado Brito (University of Cape Verde, Cape Verde)
DOI: 10.4018/978-1-7998-3226-3.ch007
Purchase
|
Abstract
Title III of the Jumpstart Our Business Startups Act (JOBS Act) enacted by the U.S. Congress enables a new crowdfunding source of investment capital for entrepreneurs and a new opportunity for all investors (Regulation CF). Given the information asymmetry, the SEC requires that managers provide information to investors (Form C). Using this information, this research tests whether business attributes, financial risks, and offering characteristics are associated with successful crowdfunding efforts for 277 offerings originating during 2016-2017 and closed as of May 2018. The following attributes are positively correlated with funding success: product idea; prior managerial experience with startups; financial risks reported by management; availability of an independent CPA review; and, especially for companies reporting revenue, accounting risk measurements. Finally, the funding intermediary chosen is important and some were more successful than others. Overall, the results provide new insights concerning characteristics of successful security-based crowdfunding offerings.
Related Content
|
Emrah Arğın.
© 2022.
16 pages.
|
|
Ebru Gülbuğ Erol, Mustafa Gülsün.
© 2022.
17 pages.
|
|
Yeşim Şener.
© 2022.
18 pages.
|
|
Salim Kurnaz, Deimantė Žilinskienė.
© 2022.
20 pages.
|
|
Dorothea Maria Bowyer, Walid El Hamad, Ciorstan Smark, Greg Evan Jones, Claire Beattie, Ying Deng.
© 2022.
29 pages.
|
|
Savas S. Ates, Vildan Durmaz.
© 2022.
24 pages.
|
|
Nusret Erceylan, Gaye Atilla.
© 2022.
20 pages.
|
|
|