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Examination of the success drivers of equity crowdfunding campaigns in Malaysia

Shaista Wasiuzzaman (School of Business, Universiti Teknologi Brunei, Gadong, Brunei Darussalam)
Nur Firzanah Suhili (School of Business, Universiti Teknologi Brunei, Gadong, Brunei Darussalam)

Journal of Entrepreneurship in Emerging Economies

ISSN: 2053-4604

Article publication date: 30 November 2021

Issue publication date: 28 February 2023

518

Abstract

Purpose

This study aims to investigate the drivers of successful equity crowdfunding campaigns in Malaysia.

Design/methodology/approach

Data for this study are collected manually from 5 different equity crowdfunding platforms in Malaysia. A total of 101 campaigns are analyzed, out of which the final sample used for this study is 97. The relationships are analyzed via ordinary least squares multiple regression analysis.

Findings

The results of the analysis show that minimum funding target, minimum investment required, pre-money valuation and length of pitch video are highly significant in influencing the success of the campaign. Percentage of equity retained is only significant at the 10% level. The size of the project team and the text length of the pitch are found to be insignificant. In addition, all the variables, except for equity retained and the minimum investment required, are found to have a positive impact on the success of an equity crowdfunding campaign in Malaysia.

Originality/value

To the best of the authors’ knowledge, this is the first study that investigates the success factors of equity crowdfunding campaigns in a developing country such as Malaysia. In addition, this study contributes to the literature on equity crowdfunding success via the inclusion of less-studied variables such as pre-money valuation and minimum investment required.

Keywords

Acknowledgements

The authors thank the Editor and the anonymous reviewers for their insightful comments, which have helped improve the quality of this paper.

Citation

Wasiuzzaman, S. and Suhili, N.F. (2023), "Examination of the success drivers of equity crowdfunding campaigns in Malaysia", Journal of Entrepreneurship in Emerging Economies, Vol. 15 No. 2, pp. 425-446. https://doi.org/10.1108/JEEE-04-2021-0134

Publisher

:

Emerald Publishing Limited

Copyright © 2021, Emerald Publishing Limited

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