Equity Crowdfunding Based on the Blockchain? A Delphi Study

Abstract

Purpose: Decentralized, blockchain-based equity crowdfunding has potential to close the equity-funding gap faced by startups. The present paper investigates the driving forces of equity crowdfunding and the impact of the blockchain. Design: In a two-round, expert-based Delphi survey, ten market-driving forces within equity crowdfunding are identified and ranked according to how they influence equity crowdfunding, and in turn, how they are influenced by blockchain technology. Findings: Savings and financial benefits, facilitation of the financing process, satisfaction of intrinsic and social needs, outreach of projects and products, costs from equity funding, and financial provision were found to have a positive effect, whereas risks from equity crowdfunding, educational gap, investor protection, and monitoring problems and asymmetric information were found to have a negative impact on equity funding. Research limitations: Any Delphi study depends on the selection and interactive votings of experts. Practical implications: Experts assessed that the blockchain has a positive influence on all of those forces, also to a certain extent counteracting negative effects. This indicates that Equity Crowdfunding Based on the Blockchain can be viable approach for financing startups if the counteracting effects are sufficiently mitigated. Originality: Blockchain-based equity crowdfunding has the potential of becoming disruptive.