Investor retention in equity crowdfunding

Igor Zakhlebin, Emoke-Agnes Horvat

Research output: Chapter in Book/Report/Conference proceedingConference contribution

1 Scopus citations

Abstract

Crowdfunding platforms promise to disrupt investing as they bypass traditional financial institutions through peer-To-peer transactions. To stay functional, these platforms require a supply of investors who are willing to contribute to campaigns. Yet, little is known about the retention of investors in this setting. Using four years of data from a leading equity crowdfunding platform, we empirically study the length and success of investor activity on the platform.We analyze temporal variations in these outcomes and explain patterns using statistical modeling. Our models are based on information about user's past and current investment decisions, i.e., content-based and structural similarities between the campaigns they invest in. We uncover the role of past successes and diversity of investment decisions for novice vs. serial investors. Our results inform potential strategies for increasing the retention of investors and improving their decisions on crowdfunding platforms.

Original languageEnglish (US)
Title of host publicationWebSci 2019 - Proceedings of the 11th ACM Conference on Web Science
PublisherAssociation for Computing Machinery, Inc
Pages343-351
Number of pages9
ISBN (Electronic)9781450362023
DOIs
StatePublished - Jun 26 2019
Event11th ACM Conference on Web Science, WebSci 2019 - Boston, United States
Duration: Jun 30 2019Jul 3 2019

Publication series

NameWebSci 2019 - Proceedings of the 11th ACM Conference on Web Science

Conference

Conference11th ACM Conference on Web Science, WebSci 2019
CountryUnited States
CityBoston
Period6/30/197/3/19

ASJC Scopus subject areas

  • Computer Networks and Communications

Cite this