Family-governed businesses and successful equity crowdfunding: The moderating role of sustainability orientation

Crowdfunding has arisen as a prominent alternative to more traditional forms of financing, with equity crowdfunding (EC) becoming increasingly significant for its economic relevance and unique dynamics. While previous research has explored various factors contributing to EC campaign success, the role of firm governance, particularly family governance – i.e., the involvement in management and/or ownership of members of the same family - remains underexplored. Therefore, this study tackles this gap by examining the influence of family governance on EC success. Family-governed businesses, known for their long-term orientation and more conservative risk behavior, may inspire greater trust from investors, hence enhancing their campaign success. Additionally, the growing importance of business and campaign sustainability orientation in investors’ decision-making suggests it could further strengthen the positive relationship between family-governed businesses and EC success. Using data collected on 500 EC campaigns from leading Italian platforms, we find support for our hypotheses. This study contributes to the EC literature and family business research and has important implications for family-governed businesses seeking to optimize their EC campaigns.