Table 5.

Structure of the thematic analysis

AuthorsTheoretical frameworkCategories of determinants of ECFMechanisms through which they affect ECFVariables that can affect ECF outcome and effect sign
Ahlers et al. (2015)Signaling theory, entrepreneurial ownership, IPOHuman capital, social capital, intellectual capital, financial informationSignalsHuman capital (+): board members (+), %MBA (+). Social capital (+/−): %nonexecutive board members. Intellectual capital (+/−): patents. Retained equity offering (−). Financial information: absence of disclaimer of no information (−; but not on the number of investors). Exit channel/strategy (+/−; “cheap talk” and not effective signal)
Agrawal et al. (2016)Information asymmetry and quality assessment, voting rights and syndicatesSyndicatesSyndicates deals provide division of labor among investors (due diligence, etc.), enhance economic growth by reducing market failures and allocating capital more efficientlySyndicates (+)
Li et al. (2016)Traditional finance on capital markets and information disclosureFirm characteristics, team characteristics, lead investor information, project presentation and social interactionLikelihood of elaboration (ELM) and persuasion, information disclosure reduce information asymmetry and induce persuasion; early lead investments as signal, but not for higher percentage of investment (collusion risk)Team size (+), firm age (+), ratio of full-time workers (+), human capital (+), project updates and interactions (+), pitch video (+), length of description (+), information disclosure (+), early lead investments (+), percentage of lead investors’ investments (−; think they might collude to attract followers)
Lukkarinen et al. (2016)Drivers of investment decisions in adjacent fields to ECF: crowdfunding (reward, etc.) and VCs and BAsInvestment decision criteria of CF, investment decision criteria of early-stage financing (VC, BA), campaign characteristicsCredibility, encourage investment, capability and decisiveness of entrepreneursBA/VC criteria (+/−): financial information (+/−, but may be relevant for accredited investors with more expertise). CF criteria (+, easily observable): understandability of product (+), campaign characteristics (+): [funding target (+), share price/min investment (−), campaign duration (−), financials provision (+/−)], network (+): [private funding from early hidden phase (+), social media network interaction (+, Facebook)]
Vismara (2016)Equity retention, entrepreneurs’ social capital and social networkCampaign characteristics, social capital, firm characteristicsSignalingSocial capital (+, LinkedIn), retained equity offering (−), team size (+), funding target (+), tax incentives (+/−), exit IPO (+/−), exit in five years (−), dividends intention (+), female gender (−), duration (−), seedrs (+), London (+/−)
Vulkan et al. (2016)CrowdfundingCampaign characteristics, investors characteristics, firm characteristicsHerding behavior, signalingShare accumulated in first week (+), funding target (-), largest investment made by single investor (+), number of investors (+), premoney (+/−), team size (+, weak), tax incentives (+/−), public profile of investors (+/−)
Löher (2017)Crowdfunding, role of platforms, information asymmetries, intermediationRole of platformsPlatform intermediation: project evaluation and assessment (prescreening), reputation, reduction of information asymmetry, reduction of transaction costs Platform intermediation (+)
Block et al. (2018)Signaling theory and information disclosureUpdates, readability/understandability index of updatesUpdates by start-up as signals in ECFUpdate number (+, but takes time and “cheap talks” issue), Flesch readability index (+, but weak, on number of investments only and takes time), word count (+/−). Updates about: (new funding (+), business development (+), campaign developments (+), cooperation projects (+), team update (+/−, typically do not change during campaign), business model (+/−, typically do not change during campaign), external certifications (−, not credible?)
Löher et al. (2018)Entrepreneurial finance, information asymmetry, crowdfundingOwn commitment level of entrepreneurs, firm characteristics, campaign characteristics, investor characteristicsSignalsOwn commitment level (+), premoney (+), professional investors (+/−), firm age (−), financing alternatives available before start (+/−), destination of funds: [market entry (+/−), market penetration (+/−)].
Malaga et al. (2018)Female entrepreneurship and financeGenderECF platform as facilitator for female entrepreneurshipGender (+/−, perhaps ECF do not ease female entrepreneurship)
Mamonov and Malaga (2018)ECF title III JOBS ActBusiness characteristics: market risk, execution risk, agency risk. Human capital, intellectual capital, firm characteristicsLess sophisticated investors will follow more sophisticated investors’ lead (BA, VC) decision-makingCompany development (of product) stage (+), venture with large corporate clients (+), intellectual capital and patents (+/−), team size (+), prior early-stage funding (+, BA, VC), serial entrepreneur (+/−), entrepreneur experience (+/−)
Motylska-Kuzma (2018)Sustainable developmentSustainability elements, campaign characteristicsSensitivity of investors to sensitivityKey elements of sustainable development (+, but not on the number of investors), Basic elements (+, weaker: number of investors not sensitive to sustainability)
Piva and Rossi-Lamastra (2018)Information asymmetry, human capital, signalingHuman capital, social capital, intellectual capital, firm characteristics, business characteristicsSignalsEntrepreneur social (media, LinkedIn) capital (+), funding goal (−), high-tech (−, more uncertainty Ahlers et al., 2015), team size (+/−), intellectual capital and patents (+). Human capital: (entrepreneur education (+, but only specific to business education; others are +/−), entrepreneur experience [+, but not necessarily in industry)]. Gender (+/−)
Barbi and Mattioli (2019)Human capital, crowdfundingHuman capital, firm characteristics, team characteristics, business characteristicsSignalsFirm age (+), high-tech (+/−), big city (+/−), reward/discounts in addition to shares (+/−), prior seed financing (+), featured in media, newspapers, TV (+), online presence (+/−, number of social media on webpage), team size (+), graduate within team (+, weak), professional business experience (+), experience in the field of firm (+/−), gender (+/−), volunteering (+/−)
Cumming et al. (2019a, 2019b)Corporate finance theories about voting rights and separation between ownership and control (Principal-Agent)Ownership variablesSignals: firm value increase with cash-flow rights of controlling shareholders but decrease if voting rights exceed cash-flow rights. Separation of voting power and cash-flowEquity offered [−, equal to cash-flow rights (+)], separation ownership and control (−, potential rise of agency costs), separation mitigated by entrepreneur experience (+), firm age (−), positive sales (+)
Kleinert and Volkmann (2019)Information asymmetries, early-stage financeDiscussion and discussion topics. Control for herding (investor frequency before day t)Signals, herdingInvestor frequency (+), competing offers (+), entrepreneur reply (+), updates (+), discussions (+), discussion topic (+, significant: market risk, financial snapshot, likely return, shareholders' rights)
Mamonov and Malaga (2019)Market risk, execution risk, agency risk, computer mediation challenge (videos)Intellectual capital, human capital, firm characteristics, market/product characteristics, pitch videoEffects of market risk, agency risk, execution risk and computer mediationMarket risk: firm age/stage (+), B2B corporate clients (+), patents (+). Agency risk: BA/VC investors (+). Execution risk: team size (+/−), entrepreneur industry experience (+/−), serial entrepreneur (+). Computer mediation: use of pitch video (+), presence of entrepreneur in video (+/−)
Nitani et al. (2019)Information asymmetry, crowdinvestors’ rationality, social media herding behaviorFirm characteristics, financial information and measures, usage of funding, social capital, human capitalSignals, herdingFirm attributes: firm size (+), firm age (−), exit strategy: IPO (+), M&A (−, weak). Usage of funds: working capital (+), R/D (+/−), marketing (+/−), market expansion (+/−). Financial measures: expected sales growth (+, but reasonable), expected EBITDA (+). Social network (+, LinkedIn and Facebook). Prior start-up experience (+). Education degree (+/−)
Rossi et al. (2019)Corporate governance: separation between ownership and control, voting rights, information asymmetryOwnership and voting rights, syndicate-platform, platform characteristicsSignals: impact of voting rights delivery, platform intermediationVoting rights (+/−): individual voting rights (−), pooled voting rights (+/−), syndicate-like platforms (−), common law country (+), platform age (+)
Usman et al. (2019)Information asymmetryRole of media, experienceSignalsRole of media (+, both video and images), past CF success (+), duration (−), updates (+), comments (+), number of URL links shared (+)
Vismara (2019)Sustainable development, signal interpretationFirm characteristics, human capital, campaign characteristics, business characteristicsSignals and different interpretations (characteristics of the receiver)Sustainability (+/−, but attracts more crowd investors; not professionals), team size (+, but not for professionals), entrepreneur experience (+/−), target capital (+, but for investors only and not for success), equity offered (−), serial entrepreneur (+/−), tax incentives (+/−)
De Crescenzo et al. (2020)Contingency factors of ECFFirm characteristics, campaign characteristicsSignals and contingencyFirm age (−), industry sector (+), team size (+), gender (+, failure if not female), reward (−, they prefer financial returns), pictures (+)
Kleinert et al. (2020)Entrepreneurial finance, signalingPrior funding, human capital, social capital, firm stage, firm characteristicsSignals with moderation effectsPrior funding (+): CF (+), VC (+, but only for no. investors), BA (+, but only for no. investors), grant (+, but not for no. investors). Market access (+, but not on number of investors), entrepreneur education (+), technology (−, but only for number of investors), exit plan (+), funding goal (+, but only for number of investors), multiple investor types (+), revenues/sales (+), moderation effects of social capital (+, nonexecutive directors), moderation effects of seed stage (+)
Ralcheva and Roosenboom (2020)Entrepreneurial finance and ECFCampaign characteristics, firm characteristics, intellectual capital, human capitalSignalsEquity offered (−), funding goal (+/−), external financing (+), accelerator attendance (+), firm age (−), team size (+), entrepreneur age (−), prior ECF funding (follow-on campaign) (+), intellectual property rights and patents (+/−)
Xiao (2020)Trust theory and early-stage financingTrustSignals, trust building, platform intermediation
Lim and Busenitz (2020)Signaling and CF, human capital characteristicsHuman capital, team characteristics (moderation effect)SignalsHuman capital (+): university education (+), management experience in SMEs (+), management experience in large companies (+/−), startup experience of previous ventures (+), startup experience of ongoing ventures (−). Team characteristics (+): team size (+, dummy: lone founder or team-based). Control: sales (−), intellectual capital [+, number of patents (+), proportion of MBAs (+)], funding target (+), team board/employee size (+/−), location (+/−), prior CF funding (+/−, dummy)
Shafi (2021)ECF and professional investors’ criteriaHuman capital (team characteristics), firm characteristics (business), financial information and metricsEvaluability heuristicsManagement: management rating (+), commitment (+), experience (+/−), skills (+/−). Business: business rating (+), market rating (+/−), product rating (+/−), competition rating (+/−). Financials (+/−). Control: prior CF success (+), equity offered (−), high-tech (+/−), London (+/-), funding target (+/−), firm age (+/−), tax relief (+/−)
Andrieu et al. (2021)ECF and female entrepreneurship, homophily theoryGenderFemale risk aversion and homophily theoryGender (−); Control: entrepreneur characteristics: [+/−,PhD level ( ), hi-tech experience (+/−), ethnicity (+/-)], firm maturity (+/−), geographical location (+/−), funding goal (−), date (+/−), platform (+/−)
Dority et al. (2021)ECF determinants, signaling, information asymmetry and information overloadPitch descriptions: textual analysis in CF and information overloadSignals; tone and readability of descriptions, information overload (less is more)Readability: Information quantity [word count (+) word count^2(−)], information quality [SMOG (+), SMOG^2(−)]; tone [Information attitude (+), information attitude^2(−)]. Control: [gender (+/−), funding goal (−), prior seed financing (+), VIX volatility level (−)]
Meoli and Vismara (2021)Signaling, digital finance, social finance, information manipulationWithdrawal rightsSignals, information manipulationPlatform-member investment (−), platform-member withdrawal (+). Control: funding target (−), team size (+/−), sales (+), equity offered (−)
Vrontis et al. (2021b)Knowledge sharing, singalingIntellectual capital, social capital, platform characteristics, campaign characteristicsKnowledge sharing and information disseminationPlatform information hub (+), number of campaigns on platform (+/−), intellectual capital (+), geographical distance(+/−), number of shareholders (+), team size (+/−), reward (+), equity retention (+/−), campaign success (+)
Coakley et al. (2022)SignalingTeam characteristics, human capitalSignals, certification effectTeam size [+, lone founder (−)], human capital [+, tenure heterogeneity (+), age heterogeneity (+), advanced degrees (+)]. Controls: (premoney (+/−), firm maturity [+, startup dummy(−)], location (+/−), equity offered (+/−), diversification (−), funding target (+/−), number of investors (+)]

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