This thesis aims to understand how investment uncertainty is managed in equity

crowdfunding (ECF). It does so by exploring backer behaviors at different stages of

the investment decision process during funding windows, based on information and

communication technology (ICT) and innovation. The included papers in this thesis

are also linked to a conceptual model for an overall view of backer behaviors during

this phase of the investment decision process. This expands the research on investment

decision-making in this domain and provides insights regarding the management of

investment uncertainty in ECF.

ECF is a result of the fintech revolution supported by ICT and innovation as key

catalysts. These catalysts have created a structural change in early-stage financing,

which is burdened by investment uncertainty. Investment uncertainty arises from

information asymmetry, and highlights the importance of information availability in

managing uncertainty. However, the absence of face-to-face meetings with

entrepreneurs and the lack of knowledge among backers are key concerns in the

investment decision process. This reduces access to information and reduces the

possibility of making independent and accurate decisions.

Hence, backers must find ways to obtain information, and ICT-driven innovations have

become an important solution to this problem. In contrast to traditional funding

alternatives in this domain, ECF offers unique opportunities based on social capital (the

wisdom of the crowd) and context (designed functionalities). These opportunities have

full potential during funding windows on digital platforms and come in the shape of

interactions and collaborations vital for ICT-driven innovations.

This thesis comprises four papers. Paper 1 analyses the conditions for ICT and

innovation that lead to structural changes. Paper 2 evaluates the characteristics

embedded in demand-driven signals from discussion boards. Paper 3 explores

investment dynamics based on signaling during funding windows. Finally, Paper 4

examines investment strategies based on investor type and portfolio theory.

Consequently, Paper 1 presents the conditions for this phenomenon to occur, while

Papers 2-4 explore how this affects backer behaviors in relation to theoretical models

to draw conclusions about the management of investment uncertainty.

Various patterns emerged from these studies. First, the drivers of ICT and innovation

can be clustered and positioned within the innovation lifecycle. Early in this lifecycle,

they rely on networks based on interactions and collaboration for new knowledge

production. Second, backers tend to appreciate clarity in feedback loops (answers)

based on demand-driven signals (questions) from discussion boards when evaluating.

Third, some backers invest early, whereas others invest late and receive all available

signals during the funding windows. Fourth, more sophisticated backers invest more

aggressively than less sophisticated ones. Hence, all patterns depend on ICT and

innovation, and enable conclusions about the management of investment uncertainty

during funding windows in ECF.