Fundraising and governance of sustainability-oriented ventures: Evidence from equity crowdfunding

Abstract

The present research examines the short-term and the long-run performance of sustainabilityoriented ventures (SOVs) seeking to raise funds in equity crowdfunding (ECF) markets. By examining the combined signals of sustainability orientation and corporate governance mechanisms, our empirical analysis substantiates the hypothesis that only SOVs with a nominee ownership structure have significantly better chances than other ventures to realize short-term success. In the long run, SOVs that secure funds in ECF markets exhibit higher follow-on fundraising capacity. Hence, a sustainability orientation not only imparts ethical value to investors but also fosters sustained economic performance and long-term viability.