Funding Target, Number of Entrepreneurs and Venture Stage: Optimizing for Success in Equity Crowdfunding

Scholars have highlighted the critical role of funding targets in determining the amount of funding acquired in equity crowdfunding campaigns. However, there is little equity crowdfunding research that incorporates funding targets as a focal variable of interest. Moreover, the findings in these limited studies have been equivocal, suggesting the need to look at moderators. This research aims to contribute to the equity crowdfunding literature by examining the value of funding targets on the amount of financing raised. Specifically, we investigate the impact of the number of entrepreneurs and the venture stage on the relationship between funding targets and the amount of funding raised in equity crowdfunding campaigns. We conducted a study involving 190 equity crowdfunding campaigns. Our analyses show that for early-stage ventures, a high funding target and an increased number of entrepreneurs collectively attracted the most funding in equity crowdfunding campaigns. By contrast, for late-stage ventures, a high funding target facilitated funding obtained in equity crowdfunding campaigns, with this impact being amplified as the number of entrepreneurs decreases. This research highlights the importance of considering the number of entrepreneurs and the venture stage when determining funding targets for equity crowdfunding campaigns to optimize campaign success.