Identifying the key motives to pursue equity crowdfunding and their implications on the outcome

Abstract: In this study, we aim to identify the key motives for companies to pursue equity crowdfunding and analyse if there are any differences in motives of funded companies compared to non-funded companies. We further contrast potential implications of differences in motives on the outcome of an equity crowdfunding campaign. To do so, we conduct a qualitative multiple case study based on interviews with fourteen Swedish funded and non- funded companies that have conducted such a campaign. We find that raising capital and obtaining crowd investors as ambassadors are the two primary motives to pursue equity crowdfunding. Funded companies tend to have a more holistic view on the decision to pursue equity crowdfunding and desire for the ambassadors to be more involved in their business compared to the non-funded companies. This seems to have had a substantial influence on campaign execution, thereby potentially impacting the chances of success of an equity crowdfunding campaign.