Skip to main navigation menu Skip to main content Skip to site footer

How do investors invest in crowd-investing? A qualitative study in Mexico


Objective: The purpose of this paper is to understand for the first time how inexperienced investors invest in high-risk new ventures in Mexico through a crowd-investing platform.

Research Design & Methods: The study follows a qualitative approach based on case studies. We developed our case study design from theoretical propositions which also guided the case study analysis. The in-depth interviews with investors revolved around investors’ motives for investing and the way they evaluated investment opportunities in new ventures.

Findings: The study shows that novice investors in Mexico invest in crowd-investing not because of financial motivations but because they want to learn how to finance private companies and to live an exciting experience. In addition, their investment decisions are based on intuition to recognize the right people for the project and on their business experiences to assess the growth potential of the new venture.

Contribution & Value Added: To date, there is limited research on investors’ behaviour in crowd-investing markets. This research presents academics and practitioners with valuable insights into factors that influence the decision-making process of crowd-investing investors.


investment decisions, crowd-investing, equity crowdfunding, investor behaviour, business angels, fintech, Mexico


Author Biography

Enrique Wiencke

Bachelor´s Degree in Electronics and Communications (Instituto Tecnológico y de Estudios Superiores de Monterrey, México); Master’s in Engineering (University of Tokyo, Japan); Master’s in Business Administration (Massachusetts Institute of Technology, U.S.A.); PhD Degree in Administration (Universidad Autónoma de Querétaro, México). His research interests include equity crowdfunding, venture capital, and private equity.

Pilar Madrazo-Lemarroy

Bachelor’s Degree in Accounting (Instituto Tecnológico y de Estudios Superiores de Monterrey, México); Master’s in Business and Economics (Universidad Anáhuac, México); PhD Degree in Strategic Management and Development Policies (Universidad Anáhuac, México). Her research interests include financial technologies and behavioural finance.

Luz Estela Reyna

Bachelor’s Degree in Accounting (Universidad LaSalle, México); Master’s in Administration (Universidad del Valle de México, México); PhD Degree in Education (Colegio de Estudios de Posgrado de la Ciudad de México, México). Her research interests include financial education and technologies.


  1. Abrams, E. (2017). Securities Crowdfunding: More than Family, Friends, and Fools. Retreived on July 13, 2019 from f9817.pdf. Ac-cessed on july 13, 2019.
  2. Agrawal, A., Catalini, C., & Goldfarb, A. (2014). Some simple economics of crowdfunding. Innovation policy and the economy, 14(1), 63-97. Retrieved from
  3. Ahlers, G.K.C., Cumming, D., Günther, C., & Schweizer, D. (2015). Signaling in equity crowdfunding. Entrepreneurship theory and practice, 39(4), 955-980.
  4. Angerer, M., Brem, A., Kraus, S., & Peter, A. (2017). Start-up funding via equity crowdfunding in germany- a qualitative analysis of success factors. The Journal of Entrepreneurial Finance, 19(1), 1.
  5. Block, J., Hornuf, L., & Moritz, A. (2018). Which updates during an equity crowdfunding campaign increase crowd participation. Small Business Economics, 50(1), 3-27.
  6. Bretschneider, U., & Leimeister, J. M. (2017). Not just an ego-trip: Exploring backers’ motivation for funding in incentive-based crowdfunding. The Journal of Strategic Information Systems, 26(4), 246-260.
  7. Brown, R., Mawson, S., Rowe, A., & Mason, C. (2018). Working the crowd: Improvisational entrepreneurship and equity crowdfunding in nascent entrepreneurial ventures. International Small Business Journal, 36(2), 169-193.
  8. Bruton, G., Khavul, S., Siegel, D., & Wright, M. (2015). New financial alternatives in seeding entrepreneurship: Microfinance, crowdfunding, and peer‐to‐peer innovations. Entrepreneurship Theory and Practice, 39(1), 9-26.
  9. Cholakova, M., & Clarysse, B. (2015). Does the Possibility to Make Equity Investments in Crowdfunding Projects Crowd Out Reward-Based Investments. Entrepreneurship Theory and Practice, 39(1), 145-172.
  10. Colombo, M.G., & Franzoni, C. (2015). Internal social capital and the attraction of early contributions in crowdfunding. Entepreneurship: theory and practice, 39(1), 75-100.
  11. Cumming, D.J., Vanacker, T., & Zahra, S.A. (2019). Equity crowdfunding and governance: Toward an integrative model and research agenda. Academy of Management Perspectives, in press.
  12. Cummings, M.E., Rawhouser, H., Vismara, S., & Hamilton, E.L. (2019). An equity crowdfunding research agenda: evidence from stakeholder participation in the rulemaking process. Small Business Economics, 1-26.
  13. Daskalakis, N., & Yue, W. (2017). User’s Perceptions of Motivations and Risks in Crowdfunding with Financial Returns. Retrieved on July 15, 2019 from
  14. Eisenhardt, K.M. (1989). Building theories from case study research. Academy of management review, 14(4), 532-550.
  15. Eisenhardt, K.M., & Graebner, M.E. (2007). Theory building from cases: Opportunities and challenges. Academy of Management Journal, 50(1), 25-32.
  16. Estrin, S., Gozman, D., & Khavul, S. (2018). The evolution and adoption of equity crowdfunding: entrepreneur and investor entry into a new market. Small Business Economics, 51(2), 425-439.
  17. Freedman, D.M., & Nutting, M. R. (2015). Equity crowdfunding for investors: A guide to risks, returns, regulations, funding portals, due diligence, and deal terms. John Wiley & Sons.
  18. Geiger, M., & Oranburg, S.C. (2018). Female entrepreneurs and equity crowdfunding in the US: Receiving less when asking for more. Journal of Business Venturing Insights, 10,.
  19. Hervé, F., Manthé, E., Sannajust, A., & Schwienbacher, A. (2017). Determinants of individual investment decisions in investment‐based crowdfunding. Journal of Business Finance & Account-ing, 46(5-6), 762-783.
  20. Hornuf, L., & Schwienbacher, A. (2014). Crowdinvesting – Angel investing for the masses. In H. Landström & C. Mason (Eds.), Handbook of Research on Business Angels (pp.381-398). Cheltenham: Edward Elgar.
  21. Horvát, E.Á., Wachs, J., Wang, R., & Hannák, A. (2018, June). The role of novelty in securing investors for equity crowdfunding campaigns. In Sixth AAAI Conference on Human Computation and Crowdsourcing.
  22. Huang, L., & Pearce, J.L. (2015). Managing the unknowable: The effectiveness of early-stage investor gut feel in entrepreneurial investment decisions. Administrative Science Quarterly, 60(4), 634-670.
  23. Ibrahim, D.M. (2015). Equity crowdfunding: A market for lemons. Minnesota Law Review, 100 (2), 561-607.
  24. Kim, H., & De Moor, L. (2017). The case of crowdfunding in financial inclusion: a survey. Strategic Change, 26(2), 193-212.
  25. Kleinert, S., & Volkmann, C. (2019). Equity crowdfunding and the role of investor discussion boards. Venture Capital, 21(4), 327-352.
  26. Mochkabadi, K., & Volkmann, C.K. (2018). Equity crowdfunding: a systematic review of the literature. Small Business Economics, 1-44.
  27. Mollick, E., & Robb, A. (2016). Democratizing innovation and capital access: The role of crowdfunding. California management review. 58(2), 72-87.
  28. Mollick, E. (2014). The dynamics of crowdfunding: An exploratory study. Journal of business venturing, 29(1), 1-16.
  29. Moritz, A., Block, J., & Lutz, E. (2015). Investor communication in equity-based crowdfunding: a qualitative-empirical study. Qualitative Research in Financial Markets, 7(3), 309-342.
  30. Moysidou, K., & Spaeth, S. (2016). Cognition, emotion and perceived values in crowdfunding decision making. In Open and User Innovation Conference, Boston, USA.
  31. Niemand, T., Angerer, M., Thies, F., Kraus, S., & Hebenstreit, R. (2018). Equity crowdfunding across borders: a conjoint experiment. International Journal of Entrepreneurial Behavior & Research, 24(4), 911-932.
  32. Piva, E., & Rossi-Lamastra, C. (2018). Human capital signals and entrepreneurs’ success in equity crowdfunding. Small Business Economics, 51(3), 667-686.
  33. Ralcheva, A., & Roosenboom, P. (2018). Forecasting success in equity crowdfunding. Small Business Economics, 1-18.
  34. Shafi, K., & Sauermann, H. (2017). Investor Decision-Making in Equity Crowdfunding. Academy of Management Proceedings, 2017(1), 14548).
  35. Vismara, S. (2016a). Equity retention and social network theory in equity crowdfunding. Small Busi-ness Economics, 46(4), 579-590.
  36. Vismara, S. (2016b). Information cascades among investors in equity crowdfunding. Entrepreneur-ship Theory and Practice, 42(3), 467-497.
  37. Wallmeroth, J. (2019). Investor behavior in equity crowdfunding. Venture Capital, 21(2-3), 273-300.
  38. Walthoff-Borm, X., Schwienbacher, A., & Vanacker, T. (2018). Equity crowdfunding: First resort or last resort. Journal of Business Venturing, 33(4), 513-533.
  39. Wilson, N., Wright, M., & Kacer, M. (2018). The equity gap and knowledge-based firms. Journal of Corporate Finance, 50, 626-649.


Download data is not yet available.

Similar Articles

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 > >> 

You may also start an advanced similarity search for this article.