DETERMINANT FACTORS OF EQUITY-BASED CROWDFUNDING IN MALAYSIA

Abstract

Crowdfunding as a means for investment using Fintech is relatively new. The popularity of venture capital and angel financing as a source of funds for businesses has decreased due to the advent of Fintech. The services provided are similar to traditional finance, such as simple transactions to payments, brokering and risk management. However, entrepreneurs and project owners are linked to investors by means of digitalization platforms which enable greater participation in sourcing for capital. The objective of this research is to find factors that determine fintech investment using crowdfunding in Malaysia using Technology Acceptance Model (TAM) as its based theory. Four variables are used as measurements, namely perceived informativeness, network externality, return on investment and platform quality. Data is collected by means of questionnaires to investigate the validity of the proposed model. SPSS is then used to analyze the data collected using reliability, correlation and multiple regressions. The result indicated that the perceived usefulness is significantly supported by perceived informativeness, network externality and platform quality. Furthermore, the perceived ease of use is significantly supported by perceived informativeness, network externality and return on investment. The result has contributed to the body of knowledge in this emerging area. It also enables practitioners to determine the significant variables that influence the willingness of customers to place funds via equity-based crowdfunding platforms.