This paper quantifies for the first time the return on investments in equity crowdfunding. Using an augmented dataset … funded initial equity offerings on UK crowdfunding platform Crowdcube from inception (2011) to 2015. We find that 10% of … annualized return for an initial crowdfunding investor is 8.8%, implying an overall annual value creation of 25 £m. Among the …

It is often assumed that entrepreneurs retain more control of their venture when they opt for equity crowdfunding as … by analysing the cash flow and control rights crowd investors receive in equity crowdfunding in Germany, where more … capital investment contracts are also used in equity crowdfunding contracts. We find that crowd investors are asked to pay …