Asia Pacific Journal of Information Systems (APJIS)

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Current Issue

Date	June 2019
Vol. No.	Vol. 29 No. 2
DOI	https://doi.org/10.14329/apjis.2019.29.2.283
Page	283~307
Title	Investigating Signals on Equity Crowdfunding: Human Capital, Earlier Investors, and Social Capital
Author	Jungkook An, Hee-Woong Kim
Keyword	Equity Crowdfunding, Investing Signal, Human Capital, Earlier Investors, Social Capital
Abstract	Although crowdfunding has emerged as a promising route to fundraising success, little is known about the specifics of equity-based crowdfunding. Using a data set of 1,111 start-ups with investment funding totaling over $4.67 billion, we analyzed the association between a start-up’s underlying characteristics and its funding outcome. We found that a start-up’s funding outcome is positively associated with its human capital, but neg-atively associated with earlier investors’ business experience. Furthermore, our analyses revealed that investors have higher levels of social capital are a noise signal to later investors. These findings shed light on the critical role of human capital, investors’ experience, and social capital as credible signals for start-up investment in equity crowdfunding.