Who invests why? An analysis of investment decisions in B2B or B2C equity crowdfunding projects

Crowdfunding is an interesting phenomenon in the field of financing, as it is evolving in theory and practice. However, most research is focused on non-equity-based campaigns. Hence, we shed light on a yet under researched aspect: B2B and B2C companies reaching for equity-based crowdfunding. We chose an empirical approach and conducted a quantitative study among almost 300 participants to reveal the difference between the funding decisions for startups located in either B2B or B2C markets. Our results show that differences in investments between B2B and B2C firms do exist, revealing that other success factors are necessary in those cases. Moreover, we find that the involvement of the investor as lead user has relevance for the decision to invest in both cases. We conclude with implications for theory and practice and give suggestions for future research.