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What is the typical extent to which ownership is separated from voting rights in crowdfunding campaigns on Crowdcube? Does offering a greater separation of ownership and control improve the probability that the offering will be successful? Does a greater separation of ownership and control improve long-run success? Explain, with reference to theory and evidence.

User Stavash
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Final answer:

In crowdfunding campaigns on Crowdcube, ownership is typically separated from voting rights to a certain extent. Offering a greater separation of ownership and control does not necessarily improve the probability that a crowdfunding campaign will be successful, and there is no clear consensus on whether a greater separation of ownership and control improves long-run success.

Step-by-step explanation:

In crowdfunding campaigns on Crowdcube, ownership is typically separated from voting rights to a certain extent. When individuals invest in a crowdfunding campaign on Crowdcube, they receive shares in the company based on their investment, but they may not have the same voting rights as larger investors.

Offering a greater separation of ownership and control does not necessarily improve the probability that a crowdfunding campaign will be successful. The success of a campaign depends on various factors such as the quality of the business idea, the marketing efforts, and the overall appeal to potential investors.

There is no clear consensus on whether a greater separation of ownership and control improves long-run success in crowdfunding campaigns. Some argue that a separation of ownership and control allows entrepreneurs to maintain more control over their company, which can lead to better decision-making and long-term success. However, others believe that a closer alignment between ownership and control can result in better accountability and alignment of interests, leading to long-term success.

User Panosru
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