Righi, Riccardo;
Pedrazzoli, Alessia;
Righi, Simone;
Venturelli, Valeria;
(2024)
The clientele effects in equity crowdfunding: A complex network analysis.
Journal of Behavioral and Experimental Finance
, 42
, Article 100907. 10.1016/j.jbef.2024.100907.
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Abstract
The study develops an original interdisciplinary approach, leveraging complex networks through which it identifies groups of investors and projects in equity crowdfunding, investigates whether clientele effects arise resulting in specific investor-entrepreneur matching, and explores which investor-entrepreneur combinations can lead to the emergence of collective behaviors. Data about campaigns and investors are gathered from Crowdcube to identify investors and company types that populated this leading UK platform during its early years (2011–2016). Results show that the clientele effect exists only between specific investors and project types: serial investors are attracted to innovative companies, whereas high-value and small investors, representing the largest group in the crowd, prefer mature companies in the consumer product industry. Moreover, the study reveals that information exchange in certain matching drives the clientele effect, resulting in collective behavior on specific segments: small investors engage in collective behaviors only when targeting high-tech innovative companies. These findings provide a new view on the clientele effect in equity crowdfunding platforms and the financing of innovative companies.
| Type: | Article |
|---|---|
| Title: | The clientele effects in equity crowdfunding: A complex network analysis |
| Open access status: | An open access version is available from UCL Discovery |
| DOI: | 10.1016/j.jbef.2024.100907 |
| Publisher version: | https://doi.org/10.1016/j.jbef.2024.100907 |
| Language: | English |
| Additional information: | © The Author(s), 2025. This is an Open Access article distributed under the terms of the Creative Commons Attribution Licence (CC BY 4.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. https://creativecommons.org/licenses/by/4.0/ |
| Keywords: | Clientele effect, Collective behavior, Complex networks, Crowdfunding, Infomap, Innovation |
| UCL classification: | UCL UCL > Provost and Vice Provost Offices > UCL BEAMS UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of Engineering Science > Dept of Computer Science |
| URI: | https://discovery.ucl.ac.uk/id/eprint/10206922 |
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