Exploring equity crowdfunding potential in Newfoundland and Labrador

Abstract

The study adopted a place-based approach to evaluate the potential of Newfoundland and Labrador (NL) founders in terms of human and social capital, innovation, and active knowledge sharing to attract investors through Equity Crowdfunding (ECF). A systematic literature review was conducted to understand the relevant factors for ECF success, and primary data was gathered through a survey of small tech-based enterprises to understand whether of NL founders and their companies possessed these ECF success factors. Additionally, observations of founders' and companies' social media and websites provided further data. The findings highlight the founders' strengths and areas for improvement, offering insights into their readiness for ECF success. Additionally, the study suggested initiatives that the policymakers in NL might consider to make ECF a feasible fundraising platform for NL founders. By examining regions that differ culturally and economically from large urban areas, the study contributes valuable perspectives to the ECF literature, which predominantly focuses on mainstream regions and platforms. Given the emerging role of ECF in Canada as an alternative fundraising method, the study's findings may hold significant implications for policymakers and other relevant stakeholders.