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The impact of past fundraising experiences on the fundraising performance of equity crowdfunding projects

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Abstract

Currently, small and medium-sized enterprises (SMEs) have been the mainstay of technological innovation. Given the paucity of financial support, equity crowdfunding has become a popular way for SMEs to obtain project funds in recent years. Based on all successful crowdfunding projects on Seedrs, an equity crowdfunding platform, we delved into the impact of the content not displayed on project’s presentation page, particularly past fundraising experiences, on fundraising performance. Additionally, we empirically explored the influence of three dimensions, namely whether there was past fundraising experience, the number of past fundraising experience(s), and the amount of the last fundraising, on the fundraising ratio and the number of investors. The research results indicate that (1) the fundraising ratio is not significantly related to whether there was past fundraising experience and the number of past fundraising experience(s), but positively related to the amount of the last fundraising; (2) the number of investors is not significantly related to whether there was past fundraising experience, but positively related to the number of past fundraising experience(s) and negatively related to the amount of the last fundraising. Theoretically, we explored the relations between the information not displayed and fundraising performance from the perspective of past fundraising experience, supplementing and enriching the related research. Practically, we revealed the information searching behaviors of investors and guided the crowdfunding platforms in the information display.

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Acknowledgements

This study is supported by National Natural Science Foundation of China (72272075, 71872086), Nanjing University Special Program for Middle and Long Term Outstanding Research in New Era Humanities and Social Sciences (14914220) Guangdong Province Characteristic Innovation Projects in Ordinary Universities (2022WTSCX266) and Doctoral Research Start-up Program (SZIIT2021KJ034).

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Authors and Affiliations

  1. Department of Marketing and Electronic Business, Business School, Nanjing University, Nanjing, China

    Xue Yang

  2. School of Management, Shenzhen Institute of Information Technology, Shenzhen, China

    Huiling Wang

  3. Home Link Shanghai, Shanghai, China

    Fangyue Li

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  1. Xue Yang
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Correspondence to Huiling Wang.

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Yang, X., Wang, H. & Li, F. The impact of past fundraising experiences on the fundraising performance of equity crowdfunding projects. Electron Commer Res (2024). https://doi.org/10.1007/s10660-024-09815-8

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