New investment landscape of private finance: crowdfunding shares

Stock crowdfunding has become a new landscape for financing ideas and innovations. While a number of countries have come a long way and developed platforms for crowdfunding stocks, a number of countries are moving more slowly. This paper examines how equity crowdfunding platforms work, regulatory approaches around the world, as well as scientific contributions to signaling, success factors and social financing on equity crowdfunding platforms. The review suggests that further research could dive deeper into the socio-economic importance of equity crowdfunding and whether equity crowdfunding complements or replaces traditional equity financing. The contribution of research to the dynamics of crowdfunding of actions in various geographical regions, the motivation of sponsors, the correspondence of sponsors and entrepreneurs, the effects of regulation and the evolution of potential factors of success of the campaign are very important for the development of the region. Despite discussions about risks, equity crowdfunding seems a promising place to fund entrepreneurs, democratize investment demand and supply, and promote economic growth.