Equity Crowdfunding: High-Quality or Low-Quality Entrepreneurs?

The Quality of Entrepreneurs*

What determines the quality of entrepreneurs? The article proposes a model of the interaction between individual workers decision to become entrepreneurs and employers efforts to keep their best workers and ideas. The main prediction from the model is that larger firms produce entrepreneurs of higher quality than smaller firms. Using novel and unique Norwegian data, I find that previous employe...

Signaling in Equity Crowdfunding

This paper presents an empirical examination of which start-up signals will small investors to commit financial resources in an equity crowdfunding context. We examine the impact of firms’ financial roadmaps (e.g., preplanned exit strategies such as IPOs or acquisitions), external certification (awards, government grants and patents), internal governance (such as board structure), and risk fact...

High density Lipoprotein; What to Measure: Quality or Quantity?

Equity Capital and Entrepreneurs

H ow do smalland medium-sized firms raise external equity capital? In this paper, I describe two markets that entrepreneurs of smalland medium-sized enterprises use in the United States to raise equity: the organized private equity market and the market for angel capital. Both markets are important sources of equity capital for smalland mediumsized firms. However, until recently, not much was k...

Equity crowdfunding: A new phenomena

Crowdfunding has recently become available for entrepreneurs. Most academic studies analyse data from rewards-based (pre-selling) campaigns. In contrast, in this paper we analyse 636 campaigns, encompassing 17,188 investors and 64,831 investments between 2012 and 2015, from one of the leading European equity crowdfunding platforms. We provide descriptive statistics and carry out cross-campaign ...