Author information:
Mónika Kuti: University of Pecs, Assistant Professor. E-mail: kutim@ktk.pte.hu
Zsolt Bedő: University of Pecs, Assistant Professor. E-mail: zsoltbedo@ktk.pte.hu
Dorottya Geiszl: University of Pecs, Student. E-mail: dorottya.geiszl@gmail.com
Abstract:
This paper presents the latest results of international research on equity-based crowdfunding, and thus – according to the authors’ current knowledge – fills a gap in the Hungarian literature. Equity-based crowdfunding offers a fundraising opportunity through online platforms for small and medium-sized enterprises seeking alternative forms of funding for growth opportunities and innovation in this digital age. Investors interested in risk-adjusted financial return have several methods available to handle capital market friction and agent costs in the context of “crowdfunding”. Information signals on entrepreneurial quality are essential for seasoned investors when making capital allocation decisions in a crowdfunding campaign. In addition to the national legislative framework, platforms have many different rules, techniques and cultural norms that attempt to handle capital market imperfections.
Cite as (APA):
Kuti, M., Bedő, Z., & Geiszl, D. (2017). Equity-based Crowdfunding. Financial and Economic Review, 16(4), 187–200. https://doi.org/10.25201/FER.16.4.187200
Column:
Essay
Journal of Economic Literature (JEL) codes:
F36, G19, 016
Keywords:
equity crowdfunding, financial innovation, start-up financing
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