2022. March 25. 14:18

Equity Based Crowdfunding

Determinants of Successful Campaign: the Case of Crowdcube Platform in the United Kingdom


Virginia Kirigo Wachira
Assistant Lecturer,
Meru University of Science and Technology, Meru, Kenya

Esther Wanjiru Wachira
PhD Candidate,
University of Pécs

Published in: Public Finance Quarterly 2022/1. (p. 130-149.)


Summary: The study is aimed at exploring what influences the amount of money raised which can either lead to the success or failure of equity-based crowdfunding using Crowdcube. The study used Pearson correlations and multiple regression analysis. The regression model was considered a good fit as it was statistically significant. The findings of the paper revealed that the number of investors, target amount, and pre-money valuation strongly and positively influence the success of equity-based crowdfunding campaigns. Additionally, equity, display of share price information, and online social media presence are other factors that influence the success of equity-based crowdfunding campaigns. However, previous crowdfunding history was negatively associated with the success of campaigns. The uniqueness of the study will benefit investors and founders who aim at running or investing in successful equity-based crowdfunding campaigns in the UK and globally. The study recommends further research using other equity-based crowdfunding platforms in different countries and continents.

Keywords: Crowdfunding, Equity-based crowdfunding, Crowdcube, Amount Raised, Success

JEL Codes: G23, G11, G20, O30, M13

DOI: https://doi.org/10.35551/PFQ_2022_1_8 


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