The Dynamics of Investment in Chinese Equity Crowdfunding

The dynamics of equity crowdfunding investment process are important for both fundraisers and investors, which is still not very clear. We collect data from three equity crowdfunding websites and explore the dynamics of investment in Chinese equity crowdfunding. We find that (1) the distribution of investments is L-shaped, and further investigation suggests that investors are inclined to contribute in the early phase and on the last day of the funding cycle; (2) once having reached their funding goals, small projects will get more subsequent investments while large projects are just the opposite; (3) there is no "Blockbuster Effect" in equity crowdfunding; (4) more and more large projects posted on the websites make potential investors feel weary; (5) no evidence proves herding behavior exists.