Equity Crowdfunding for Sustainable Oriented Ventures: Lead Investor Impact on Campaign Success and Post-Campaign Performance
Authors
Nicola Del Sarto, University of Florence
Cristiano Bellavitis, Syracuse University
Journal (Year)
Finance Research Letters (2025)
Summary
Lead investors' general human capital drives equity crowdfunding campaign success universally, while specialized human capital is crucial for post-campaign growth in sustainable-oriented ventures, highlighting the need for tailored human capital strategies across venture types.
Research Questions
How do lead investors' general and specialized human capital influence the success and post-campaign performance of equity crowdfunding campaigns, and how do these effects vary between sustainable-oriented ventures (SOVs) and non-SOVs?
What We Know
We know that lead investors play a crucial role in equity crowdfunding campaigns by signaling quality to potential backers and influencing both campaign success and post-campaign performance. This is particularly important for sustainable-oriented ventures (SOVs), which face unique challenges due to ESG complexities. Entrepreneurs, crowdfunding platforms, and policymakers care because understanding the nuanced impact of general and specialized human capital helps optimize funding strategies, attract suitable investors, and improve long-term outcomes for ventures.
Novel Findings
This study is among the first to investigate the differentiated impact of lead investors’ general and specialized human capital on equity crowdfunding outcomes, specifically contrasting sustainable-oriented ventures (SOVs) and non-SOVs. It reveals that general human capital enhances campaign success universally, while specialized human capital is critical for post-campaign performance in SOVs, addressing the dual challenges of financial and ESG objectives. This highlights the need for tailored human capital strategies, advancing both academic understanding and practical applications in the context of equity crowdfunding.
Implications for Practice
For practice, entrepreneurs in sustainable-oriented ventures (SOVs) should prioritize engaging lead investors with general skills to maximize campaign success and specialized expertise for post-campaign operational growth. Crowdfunding platforms can enhance campaign outcomes by showcasing the human capital profiles of lead investors, particularly emphasizing their specialized expertise for SOVs. Policymakers could support SOVs by developing targeted programs offering post-campaign mentorship and training to address ESG complexities and foster long-term venture growth.
Implications for Policy
Policymakers should consider initiatives to support sustainable-oriented ventures (SOVs) by promoting access to lead investors with specialized expertise in ESG compliance and sustainability practices. This could include targeted mentorship programs, tax incentives, or funding schemes that encourage the involvement of investors with both general and specialized human capital. Additionally, creating regulatory frameworks that highlight and validate the importance of specialized human capital in sustainable ventures can further align equity crowdfunding practices with broader sustainability goals.
Implications for Research
This research opens new avenues for exploring the interplay between human capital and equity crowdfunding outcomes, particularly in the context of sustainable-oriented ventures (SOVs). Future research could expand on these findings by examining how different dimensions of human capital influence other performance metrics, such as social and environmental impact, beyond financial profitability. Additionally, studies could investigate how these dynamics play out across diverse geographical regions and regulatory environments, enhancing the generalizability of the findings. Researchers might also explore the role of platform design in amplifying the signaling effects of human capital to attract investors effectively.
Full Citation
Del Sarto, N., & Bellavitis, C. (2025). Equity Crowdfunding for sustainable oriented ventures: Lead Investor Impact on Campaign Success and Post-Campaign Performance. Finance Research Letters, 106746.
Abstract
This study examines how lead investors’ human capital influences equity crowdfunding (ECF) outcomes, focusing on campaign success and post-campaign performance, with a specific emphasis on Sustainable Oriented Ventures (SOVs). Using a two-step Heckman model on 508 Italian campaigns (2016–2020), we find that general human capital enhances campaign success universally, signaling credibility to investors. However, for SOVs, specialized human capital becomes critical post-campaign to navigate ESG complexities. In contrast, non-SOVs benefit consistently from general human capital across both stages. These results underscore the dual role of human capital in ECF, offering actionable insights for ventures with diverse orientations.
Web URL for the Article
https://doi.org/10.1016/j.frl.2025.106746