Review of Corporate Finance > Vol 1 > Issue 3-4

New Developments in Equity Crowdfunding: A Review

Jerry Coakley, Essex Business School, University of Essex, UK, , Aristogenis Lazos, Audencia Business School, France
Suggested Citation
Jerry Coakley and Aristogenis Lazos (2021), "New Developments in Equity Crowdfunding: A Review", Review of Corporate Finance: Vol. 1: No. 3-4, pp 341-405.

Publication Date: 13 Jul 2021
© 2021 J. Coakley and A. Lazos
Corporate finance,  New business financing
Crowdfundingplatformsfintechmulti-sided marketsco-investment


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In this article:
1. Overview of Crowdfunding 
2. Typology of Crowdfunding 
3. ECF as Multisided Marketplaces 
4. Equity Crowdfunding Campaigns 
5. Equity Crowdfunding and The Entrepreneurial Finance Market 
6. ECF and Regulation 
7. Corporate Governance 
8. Conclusions and Future Research 


This article reviews the role and nature of equity crowdfunding (ECF) as a novel source of entrepreneurial finance for unlisted startups and ventures. It is distinctive from extant reviews in several respects. First, it views ECF as part of the fintech revolution and, more specifically, as a multisided marketplace that offers indirect network externalities to its participating groups such as the crowd and, increasingly, traditional entrepreneurial finance providers like angels and VC investors. Second, it stresses the relevance of corporate finance concepts by drawing parallels between initial ECF campaigns and IPOs. Finally, it focuses on the world’s most evolved ECF ecosystem – that in the UK – to highlight several new developments in ECF like the rise of the lead investor or coinvestment funding models and the role of light touch regulation.