Networking with the Crowd: Start-Ups, Networks and Equity Crowdfunding
University of St Andrews Centre for Responsible Banking and Finance
Equity crowdfunding is an increasingly
important source of entrepreneurial finance for new
ventures. However, empirical research and theoretical
development have struggled to keep pace with its growth.
This paper outlines findings from a large-scale interview
study of start-ups who obtained equity crowdfunding in the
UK. It explores the personal and business networks
involved in the equity crowdfunding process, taking a
processual perspective. The empirical findings show that
networks and social capital play a critical role in the
crowdfunding process. Start-ups leverage, build and drawn
upon a complex array of network actors and “ties” as they
move through the different stages of their crowdfunding
journey. The paper concludes that equity