The Future of Equity Crowdfunding - Is "The Crowd" Capable of Good Investment?

Sammanfattning: Applying traditional Corporate Finance and Corporate Governance theories, the purpose of this paper is to examine “the crowd’s” capability of being a good investor. Our main finding is that “the crowd” is highly sophisticated and consist of individuals capable of being good investors. We are also able to show that “the crowd” will act significantly more sophisticated in the situation of equity compared to traditional crowdfunding. Finally, we are not able to show any clear signs of the Social Influence Effect in our study, which gives further support for a sophisticated and “wise” crowd according to the wisdom of the crowd theory.