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Smart Money in Non-AccreditedEquity Crowdfunding: An explorative study on angel investors' attitudetowards non-accredited equity crowdfunding.
KTH, School of Industrial Engineering and Management (ITM), Industrial Economics and Management (Dept.), Entrepreneurship and innovation.
2014 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

Inspired by recent and ongoing changes in the legislative landscape, this study investigates the democratization of investments by the legalization of offering investment opportunities to the general public through so-called non-accredited equity crowdfunding. The objective of this study is to investigate whether non-accredited equity crowdfunding has the potential to attract smart money from angel investors.

The study was primarily conducted through a combination of literature review and in-depth interviews with experienced angel investors to gain a qualitative understanding of the underlying reasons and motivations of investment decisions as well as a clear connecti on to theory and previous research.

The empirical study showed a high level of consensus in the attitude of the interviewed angel investors towards non-accredited equity crowdfunding. The conclusion drawn from the empirical findings is that no significant evidence was found that supports the possibility for early-stage ventures to increase their chances of attracting smart money from angel  nvestors by turning to non-accredited equity crowdfunding. Positive attitudes were expressed towards parts of the funding process and indirect benefits were discussed but the  rguments often lacked consensus amongst the experts and opinions about the potential ownsides dominated the interviews. Only non-financial motives were unanimously considered viable reasons to invest and take an active role in the crowdfunded company, but ather as a form of charity than for the sake of making a profit from the investment.

Place, publisher, year, edition, pages
2014. , 50 p.
Keyword [en]
Smart Money, Angel Investors, Crowdfunding, Non-Accredited Investors
National Category
Economics and Business
URN: urn:nbn:se:kth:diva-159074OAI: diva2:782281
Available from: 2015-02-23 Created: 2015-01-20 Last updated: 2015-02-23Bibliographically approved

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