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Does the Possibility to Make Equity Investments in Crowdfunding Projects Crowd Out Reward-Based Investments?

Entrepreneurship theory and practice, 2015-01, Vol.39 (1), p.145-172 [Peer Reviewed Journal]

2015 SAGE Publications. ;COPYRIGHT 2015 Sage Publications, Inc. ;2015 Baylor University ;ISSN: 1042-2587 ;EISSN: 1540-6520 ;DOI: 10.1111/etap.12139

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  • Title:
    Does the Possibility to Make Equity Investments in Crowdfunding Projects Crowd Out Reward-Based Investments?
  • Author: Cholakova, Magdalena ; Clarysse, Bart
  • Subjects: Analysis ; Crowdfunding ; Decision making ; Economic analysis ; Economic aspects ; Entrepreneurship ; Individuals ; Investments ; Motivation ; Popularity ; Private equity ; Startups ; Studies ; Venture capital
  • Is Part Of: Entrepreneurship theory and practice, 2015-01, Vol.39 (1), p.145-172
  • Description: Despite crowdfunding's increasing popularity as a vehicle for financing early–stage ventures, we still know relatively little about the mechanisms that drive individuals to pledge and invest via such online platforms. We explored the extent to which financial or nonfinancial motivations determine the decision to invest for equity or to pledge. In addition, we also looked at whether having invested for equity can crowd out individuals’ motivation to keep a pledge into the same project. Our results show that nonfinancial motives play no significant role. Furthermore, we find that having invested for equity is a positive predictor of keeping a pledge.
  • Publisher: Los Angeles, CA: Blackwell Publishing Ltd
  • Language: English
  • Identifier: ISSN: 1042-2587
    EISSN: 1540-6520
    DOI: 10.1111/etap.12139
  • Source: Alma/SFX Local Collection

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