Equity Crowdfunding: What about the Crowd?

Sammanfattning: This thesis is about equity crowdfunding (ECF), and the crowd that makes its existence possible. ECF is a financing method for start-ups and firms that need equity capital to grow their businesses. During an “equity crowdfunding campaign”, entrepreneurs raise funds from a diverse crowd on an online platform, offering shares in return.While the existing ECF literature primarily focuses on entrepreneurs and their capital needs, my research shifts the spotlight to the crowd and their needs. I investigate the kinds of investment motives that drive these investors. Are their motivations purely financial and thus “utilitarian”? The profitability of ECF remains uncertain for the crowd. Hence, do other reasons influence their investment choices?Furthermore, the crowd’s journey does not conclude once they have successfully funded the entrepreneur during the campaign. I thus ask: What happens to the crowd after the campaign concludes? How can we characterise their behaviours? Are they merely passive providers, or do they become active shareholders? If the latter, in what capacities?My study concludes by examining an interesting theme that has been largely overlooked: the challenges faced by the crowd throughout their investment journey.The analysis employs a mixed-methods design, commencing with interviews, followed by a survey, and concluding with a netnographic analysis of forum data. By means of this diverse methodology and set of data sources, I aim to enhance our understanding of ECF investors and their experiences. While ECF can support entrepreneurship, it is of fundamental importance to understand whether the crowd is satisfied with their investment journey.