Institutional quality and success in U.S. equity crowdfunding
研究发现，在美国股权众筹中，选择在特拉华州注册公司能向投资者传递质量信号，使融资成功率平均提高6.1%，对初创企业尤其重要。
In equity crowdfunding, establishing legitimacy is crucial for firms to mitigate the information asymmetry investors face. We propose that the strategic selection of incorporating a business in Delaware—a jurisdiction recognized for its investor-friendly legal framework—sends a quality signal to investors, enticing greater participation in capital raises. While prior studies indicate a diminishing relevance of Delaware incorporation for later-stage and mature ventures, our study presents a contrasting story for smaller, nascent equity crowdfunding firms. Utilizing a comprehensive dataset of U.S. regulated equity crowdfunding offerings from May 2016 to December 2021, our empirical analysis uncovers a positive and meaningful relationship between Delaware incorporation and crowdfunding success in the United States. These findings underscore the significance of Delaware's legal infrastructure for firms confronting heightened challenges of establishing trust due to otherwise limited governance mechanisms. By highlighting the importance of institutional quality, this research contributes to understanding how legal frameworks influence investment outcomes and entrepreneurial motivations, offering insights for entrepreneurs, investors, and policymakers. • Comprehensive analysis of success factors across the entire U.S. regulation equity crowdfunding market (3539 firms). • The choice to incorporate in Delaware is a critical signal of governance quality in the opaque crowdfunding environment. • Delaware incorporation boosts the average likelihood of achieving fundraising goals by 6.1 %.