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Article

Start-Ups, Entrepreneurial Networks and Equity Crowdfunding: A Processual Perspective

Citation
Brown R, Mawson S & Rowe A (2019) Start-Ups, Entrepreneurial Networks and Equity Crowdfunding: A Processual Perspective. Industrial Marketing Management, 80, pp. 115-125. https://doi.org/10.1016/j.indmarman.2018.02.003

Abstract
This paper outlines findings from a large-scale interview based study of start-ups who obtained equity crowdfunding in the UK. It takes a novel integrative approach towards the analysis of entrepreneurial networks by examining both personal and business networks involved in the equity crowdfunding process. Adopting a processual perspective, the empirical findings show that networks and social capital play a critical role in the crowdfunding process. Start-ups leverage, build and draw upon a complex array of network actors and “ties” as they move through the different stages of their crowdfunding journey. The paper shows that this form of funding confers important relational benefits to recipients which amount to “more than money”. It concludes that equity crowdfunding is a highly “relational” form of entrepreneurial finance, requiring holistic forms of empirical investigation. Implications for theoretical development, managerial practice and further research are outlined.

Keywords
Entrepreneurship; Start-ups; Equity Crowdfunding; Social Networks; Business Networks; Entrepreneurial Networks

Journal
Industrial Marketing Management: Volume 80

StatusPublished
Author(s)Brown, Ross; Mawson, Suzanne; Rowe, Alexander
Publication date31/07/2019
Publication date online14/02/2018
Date accepted by journal02/02/2018
URLhttp://hdl.handle.net/1893/25799
PublisherElsevier
ISSN0019-8501
eISSN0019-8501
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