TY - GEN
T1 - Success factors in title III equity crowdfunding in the United States
AU - Mamonov, Stanislav
AU - Malaga, Ross
N1 - Funding Information:
1 – the company has received funding from a professional angel investor 0 – none
Funding Information:
19.5% of the ventures in our dataset had received funding from professional angel investors
Funding Information:
1 – the company has received funding from a venture capital firm 0 – none
Funding Information:
18% of the ventures in our dataset had received funding from VC investors
Publisher Copyright:
© 2018 IEEE Computer Society. All rights reserved.
PY - 2018
Y1 - 2018
N2 - Title III of the JOBS Act took effect in May 2016 and it began a new chapter in equity crowdfunding in the United States by providing an opportunity for entrepreneurial ventures to solicit funding from non-accredited investors. Due to the relative novelty, little is known about factors that can affect equity crowdfunding success under Title III. To address this gap in research, we draw on the risk capital framework and we examine the effects of market, execution and agency risks in equity crowdfunding under Title III. We collect data on 133 ventures that attracted more than $11 million in funding commitments across sixteen Title III equity crowdfunding platforms. We find that all three types of risks can affect the likelihood of successful fundraising under Title III. We discuss the implications of these findings for entrepreneurs, investors, crowdfunding platforms and policy makers.
AB - Title III of the JOBS Act took effect in May 2016 and it began a new chapter in equity crowdfunding in the United States by providing an opportunity for entrepreneurial ventures to solicit funding from non-accredited investors. Due to the relative novelty, little is known about factors that can affect equity crowdfunding success under Title III. To address this gap in research, we draw on the risk capital framework and we examine the effects of market, execution and agency risks in equity crowdfunding under Title III. We collect data on 133 ventures that attracted more than $11 million in funding commitments across sixteen Title III equity crowdfunding platforms. We find that all three types of risks can affect the likelihood of successful fundraising under Title III. We discuss the implications of these findings for entrepreneurs, investors, crowdfunding platforms and policy makers.
UR - http://www.scopus.com/inward/record.url?scp=85108253605&partnerID=8YFLogxK
M3 - Conference contribution
AN - SCOPUS:85108253605
T3 - Proceedings of the Annual Hawaii International Conference on System Sciences
SP - 3401
EP - 3410
BT - Proceedings of the 51st Annual Hawaii International Conference on System Sciences, HICSS 2018
A2 - Bui, Tung X.
PB - IEEE Computer Society
T2 - 51st Annual Hawaii International Conference on System Sciences, HICSS 2018
Y2 - 2 January 2018 through 6 January 2018
ER -