A recent study provides the first evidence of the attractiveness of sustainability-oriented ventures in equity crowdfunding.
In particular, it points out that “although sustainability per se does not increase the chances of success of equity offerings, it does attract more everyday investors.”
The logic behind this relies on the fact that in contrast with professional investors, “who follow a market logic in which they value the private appropriation of value,” everyday investors are more sensitive to a community logic.
In other words, whilst the professional investor follows a personal capitalism logic, everyday investors are the ones who pursue a cooperative capitalism approach whereby the beneficial effects on the community are recognised as the most relevant to them.
Indeed, investors that are identified as more embedded in a community logic are more likely to appreciate the sustainability-orientation of new ventures.
The study opens up new avenues for future research. In this regard, for instance, one of the most interesting aspects to explore would be the interplay between collective decision making and crowdfunding.
Find out more here.