DOI QR코드

DOI QR Code

An Empirical Study of Equity-Based Crowdfunding in Korea

국내 증권형 크라우드펀딩에 대한 실증연구

  • Kim, Min-Soo (Department of Entrepreneurship, Graduate School of Chung-Ang University) ;
  • Lee, Jong-Keon (School of Business Administration, Chung-Ang University)
  • 김민수 (중앙대학교 대학원 창업학과) ;
  • 이종건 (중앙대학교 경영학부)
  • Received : 2016.10.27
  • Accepted : 2016.11.10
  • Published : 2016.11.30

Abstract

Equity-based crowdfunding combines virtual technologies with traditional investing principles. Equity-based crowdfunding is a financing method for startups and small businesses to raise small amounts of capital from a "crowd" of investors. Small businesses can raise capital, advertise product or service, and receive feedback from crowds of investors in exchange for ownership equity in their business. This study examined the operational performance of equity-based crowdfunding in Korea. Data were collected from 125 success and failure equity-based crowdfunding of 75 firms. Results were as follows: First, success firms had a clear vision than failure firms in raising equity-based crowdfunding. Second, success firms had success experiences than failure firms in raising equity-based crowdfunding. Third, success firms had patents to technologies or products that are practical and that customers need. Fourth, success firms had three or more year long-term objectives than failure firms in raising equity-based crowdfunding. Finally, implications of the results were discussed.

Keywords

Crowdfunding;Equity-Based;Platform

References

  1. Vignone, M. "Inside Equity-Based Crowdfunding: Online Financing Alternatives for Small Businesses," Chicago-Kent Law Review, 91(2), 808-839, 2016.
  2. Mitra, D. "The Role of Crowdfunding in Entrepreneurial Finance," Delhi Business Review, 13(2), 67-72, 2012,
  3. Adhikary, B. K., Kutsuna, K, "Small Business Finance in Bangladesh: Can "Crowdfunding" be an Alternative?" Review of Integrative Business & Economics, 4(4), 1-21, 2015.
  4. Belleflamme, P., Lambert, T., Schwienbacher, A, "Crowdfunding: Tapping the Right Crowd," Journal of Business Venturing, 29(5), 585-609, 2013. DOI: https://doi.org/10.1016/j.jbusvent.2013.07.003
  5. Kwak, H. & Lee, H-G. "Reserarch Trends of Crowd-funding," National Information Society Agency (ICT Policy), 21(4), 3-19, 2014.
  6. Ordanini, A, "Crowd Funding: Customers as Investors," The Wall Street Journal, 23 March, p. r3, 2009.
  7. Schwienbacher, A., & Larralde, B. "Crowdfunding of small entrepreneurial venture," In D. Cumming (Ed.), The Oxford Handbook of Entrepreneurial Finance, NY: Oxford University Press. DOI: https://doi.org/10.2139/ssrn.1699183
  8. Kim, H. C. "Research on SEC's Final Rule on Crowdfunding Regulation," Yonsei Raw Review, 24(1), 207-224, 2016.
  9. Kirby, E., & Worner, S. "Crowd-Funding: An Infant Industry Growing Fast," Staff Working Paper, IOSCO Research Department, 2014.
  10. Jeon, S. "Feasibility of Crowd Funding Platforms for Start-Ups: With Focus on Information Goods," Asia-Pacific of Business Venturing and Entrepreneurship, 9(1), 97-105, 2014. DOI: https://doi.org/10.16972/apjbve.9.1.201402.97
  11. Chun, H. "The Effect of Equity Crowdfuding on Job Creation," The Korea Contents Association, 15(12), 541-549, 2015. DOI: http://dx.doi.org/10.5392/JKCA.2015.15.12.541
  12. Yun, M. S. "A study on the Legal Problems of the Non-Financial Crowd funding," Korean Legal Center (Justice), 142, 95-124, 2014.
  13. Kim, Y. G. "The State and Outlook of Korean Equity-Based Crowdfunding," Science & Technology Policy Institute, 26(2), 34-39, 2016.
  14. Capital Market Act, Article 117-10, Clause 3.
  15. Capital Market Act, Article 117-8.
  16. Capital Market Act, Article 117-7, Clause 2.
  17. Korea Securities Depository, "CrowdNet, Operating Structure and Participants, https://www.crowdnet.or.kr/websquare/control.jsp?w2xPath=/info/NCH_CWCR01010V.xml, (accessed Oct., 10, 2016a).
  18. Korea Securities Depository, "CrowdNet,Statistical information," https://www.crowdnet.or.kr/websquare/control.jsp?w2xPath=/stats/NCH_CWCR01053V.xml, (accessed Oct., 10, 2016b)
  19. Korea Securities Depository, "CrowdNet, Crowdfunding Success Company Information," https://www.crowdnet.or.kr/websquare/control.jsp?w2xPath=/broker/NCH_CWCR01055V.xml, (accessed Oct., 10, 2016c)
  20. Wadiz(2016), "ICT Farm Farmit," https://www.wadiz.kr/web/ftcampaign/detail/379, (accessed Oct., 10, 2016).