Be Careful What You Ask for: Fundraising Strategies in Equity Crowdfunding

Be Careful What You Ask for: Fundraising Strategies in Equity Crowdfunding

Thomas Hellmann, Ilona Mostipan, Nir Vulkan

Series number :

Serial Number: 
629/2019

Date posted :

September 19 2019

Last revised :

September 19 2019
SSRN Share

Keywords

  • entrepreneurial finance • 
  • Equity crowdfunding • 
  • Start-ups • 
  • Fundraising • 
  • Gender

We use equity crowdfunding data to ask how fundraising amounts can be explained by what entrepreneurs ask for, versus what investors want to invest. The analysis exploits unique features of crowdfunding where entrepreneurs not only set investment goals, but also chose when to close their campaigns. More experienced and more educated founder teams ask for more.

Their campaigns succeed more often, and they raise more money. Female teams ask for less, are equally successful, yet raise significantly less. They also wait longer before closing campaigns, suggesting they want to raise more than what they originally asked for.

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Authors

Real name:
Ilona Mostipan
Real name:
Nir Vulkan