Italy: Equity Crowdfunding Not Suitable For Social Issuers, Study Confirms

“Given that the market is still in its initial phase, it is not yet possible to understand whether this derives from the characteristics of social enterprises or from the characteristics of the market,” researchers argue.

Crowdfunding in all its models has enlarged the audience for social investment. Yet, a recent study by the Italian University of Modena and Reggio Emilia, found out that the Italian equity crowdfunding market does not seem suitable for supporting the financial needs of social entrepreneurs, on the side of either investors or firms.


Analyzing all the Italian Equity Crowdfunding campaigns launched by different platforms on the Italian equity crowdfunding market from 2013 to 2018 as to investigate which factors influence the campaign’s success, researchers found out that other models may be considered instead more effective compared to equity crowdfunding for social entrepreneurs.

In our study, we confirm results reported by other researchers that pinpoint the difficulties for social enterprises in raising money. Therefore, from a practical perspective, consistent with previous studies, our research may suggest that equity crowdfunding is not suitable for this kind of firms, so other models may be considered.

Find out more here.