Crowdfunding Dynamics Analysis

#JustPublished: Pleased to share my latest coauthored article, published through Taylor & Francis’ Innovation: Organization & Management (SSCI IF3.4 CS7.7). This research implies that there is scope for startups as well as small and medium-sized enterprises (SMEs), to raise their capital requirements through equity crowdfunding (ECF) platforms. In sum, the findings confirm that small businesses can benefit from these disruptive financing tools, as they enable access to resources, competencies, and capabilities to develop sustainability-oriented innovations (SOI). Abstract: This study enhances the understanding of equity crowdfunding as an open innovation tool that allows firms to embrace corporate sustainability. Building on grounded theory, we investigate how equity crowdfunding campaigns facilitate stakeholder engagement and trigger sustainability-oriented innovation. In the form of an abductive study, our qualitative inquiry adopts an interpretive stance to collect and analyse data from 17 Italian start-ups and SMEs that successfully completed an equity crowdfunding campaign. We relied on semi-structured interviews administered to managers and investors, in addition to secondary sources of information. As a result, we identify the key mechanisms by which equity crowdfunding enables companies to collect valuable feedback, resources, and market insights. According to the relational view of stakeholder engagement, two-way communication allows knowledge creation and learning, which leads to the development of sustainability-oriented innovations. A conceptual framework is provided to showcase the activity, aim, and impact of stakeholder engagement. Thus, our findings highlight the dual role of investors as financial supporters and strategic partners in driving corporate sustainability. Borrowing stakeholder theory’s dogmas, we contribute to the literature by clarifying the function of equity crowdfunding in triggering stakeholder engagement while pursuing value co-creation. From a practical standpoint, we advise companies, intermediaries, and policymakers through equity crowdfunding’s non-financial benefits exploitation to achieve corporate sustainability. Suggested citation: Perotti, F. A., Amitrano, C. C., Camilleri, M. A., & Troise, C. (2025). Equity crowdfunding: an open innovation tool to attain corporate sustainability. Innovation, 1–21. https://lnkd.in/dsWHnUjN #CrowdFunding #CrowdfundingPlatforms #EquityCrowdFunding #Innovation #Openinnovation #Networking #StakeholderEngagement #StakeholderTheory #CorporateCommunication #CorporateSustainability #Business #SMEs #StartUps #Financing #FundRaising #CrowdInvesting #AccessToFinance #AccessToCapital #BusinessResearch

I analyze the risk exposure of retail investors to equity crowdfunding in this exclusive interview in The Australian Financial Review. The desire of some investors, especially #retailinvestors to retrieve their #equitycrowdfunding investments amid rising living costs highlights the complex interplay of information dynamics, transparency issues, and varying levels of financial literacy in alternative investments. Equity crowdfunding offers an avenue for individuals to invest in early-stage companies, often with the anticipation of potential future returns. However, unlike traditional investments like stocks or bonds, equity crowdfunding typically involves investing in startups or small businesses, where the likelihood of success may be uncertain, and returns may not materialize for years, if at all. One critical challenge facing retail investors in equity crowdfunding is information asymmetry. Unlike publicly traded companies, which are subject to stringent disclosure requirements and regulatory oversight, startups seeking funding through equity crowdfunding may not offer the same level of transparency. This lack of information parity means investors often have limited access to crucial details about the company's financial health, market positioning, or management team, making it challenging to accurately gauge investment risks. Furthermore, the lower level of information transparency exacerbates the challenges posed by lower financial literacy among retail investors. Many individuals engaging in equity crowdfunding may not possess the necessary knowledge or expertise to conduct thorough due diligence or assess the risk-return profiles of their investments effectively. This can lead to a heightened sense of vulnerability, particularly when faced with external economic pressures such as rising living costs. The lower financial literacy among retail investors implies that they may struggle to fully grasp the distinction between equity crowdfunding and debt. In the case of equity crowdfunding, investors essentially become partial owners of a firm, entitling them to potential returns in the form of capital appreciation or dividends, rather than early redemption RMIT College of Business and Law https://lnkd.in/gDSdmH2c

The SEC just published its annual crowdfunding report. Here’s what they missed. Their data relies on Form C-U filings — and issuer compliance has always been low. That means key trends in investor behavior, campaign dynamics, and capital flow are either missing or misrepresented. We built a different kind of dataset. 📊 100% daily coverage across every Reg CF campaign. 📍 Real-time capital flows down to the city and zip code. 🧾 Complete tracking of security types, check sizes, and investor counts. 📈 Campaign lifecycle behavior across millions of transactions. The SEC gives you a snapshot. We built the replay engine for the entire ecosystem. If you're working in data products, capital markets, economic development, or investment strategy — this is what complete infrastructure for the retail private markets looks like. 👇 Read the article here and let’s talk if this kind of visibility matters to your work. #RegCF #Crowdfunding #PrivateMarkets #Fintech #VentureCapital #AlternativeInvesting #DataInfrastructure #StartupFunding #RetailInvesting #MarketIntelligence #CapitalMarkets #RegulationCrowdfunding