Davis, M orcid.org/0000-0001-5886-4790, Braunholtz-Speight, T and Wardrop, R (2020) Crowdfunding as democratic finance? Understand how and why UK investors trust these markets. Revista Internacional de Sociología, 78 (4). e173. ISSN 0034-9712
Abstract
Can crowdfunding contribute to the rebalancing of the financial system via democratising investment? This paper begins to respond to this question by establishing how and why investors place trust in these markets. We offer two contributions. First, to theoretical debates on democratic finance; and second, to a more empirical body of crossdisciplinary research into popular investment via a qualitative analysis of 52 original interviews with investors in six UK crowdfunding markets. Our data is taken from a project with the UK’s Financial Conduct Authority to enhance investor protection in these markets. Deploying concepts from across economic sociology, we find that investors: mobilise embedded networks to establish trust in crowdfunding; are motivated by expectations of ‘blended returns’; prefer automated investment tools if they lack experience; and typically invest with funds they have earmarked as being prepared to lose. We conclude that enhanced investor protection is required for crowdfunding to help democratise finance.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2020 CSIC. This is an open-access article distributed under the terms of the Creative Commons Attribution 4.0 International (CC BY 4.0) License |
Keywords: | Crowdfunding; Democracy; Finance; Investor Behaviour; Trust |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Education, Social Sciences and Law (Leeds) > School of Sociology and Social Policy (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 19 Oct 2020 15:38 |
Last Modified: | 25 Jun 2023 22:05 |
Status: | Published |
Publisher: | Consejo Superior de Investigaciones Científicas |
Identification Number: | 10.3989/ris.2020.78.4.m20.005 |
Related URLs: | |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:154838 |
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