Investor Intention in Equity Crowdfunding. Does Trust Matter?

Equity crowdfunding (ECF) is becoming a convenient alternative instrument for investing in entrepreneurs’ projects many countries. The purpose of this study was to investigate the factors that affect investor’s intentions toward ECF platforms Saudi Arabia, where they have not been introduced until very recently. This context offers unique opportunity test role investors’ perceived trust ECF. proposed framework builds on two critical layers: (1) platform (intermediary) and (2) fundraiser. Structured equation modelling applied examine intentions. analysed using survey data from 216 users Manafa, one largest Arabia. Our findings showed both fundraiser significant effect In particular, substantially impacts fundraiser’s trust, showing importance reliance trusted institutions. On other hand, build fundraisers must deliver high-quality information their projects.