Crowdfunding as Democratic Finance? Understanding How and Why UK Investors Trust these Markets

Mark Davis; Tim Braunholtz Speight; Robert Wardrop

Crowdfunding as Democratic Finance? Understanding How and Why UK Investors Trust these Markets

Davis, Mark ^[1] ; Braunholtz-Speight, Tim ^[2] ; Wardrop, Robert ^[3]
1. [1] University of Leeds
  
  University of Leeds
  
  Reino Unido
2. [2] University of Manchester
  
  University of Manchester
  
  Reino Unido
3. [3] University of Cambridge
  
  University of Cambridge
  
  Cambridge District, Reino Unido
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Localización: Revista internacional de sociología, ISSN 0034-9712, Vol. 78, Nº. 4 (octubre-diciembre), 2020 (Ejemplar dedicado a: Las consecuencias sociales de la financiarización: actores, procesos y estructuras de la economía financiarizada en Europa)
Idioma: inglés
DOI: 10.3989/ris.2020.78.4.m20.005
Títulos paralelos:
- ¿“Crowdfunding” como finanzas democráticas? Comprender cómo y por qué los inversores del Reino Unido confían en estos mercados
Enlaces
- Texto completo
Resumen
- español
  ¿Puede el crowdfunding contribuir al reequilibrio del sistema financiero mediante la democratización de la inversión? Este documento comienza a responder a esta pregunta estableciendo cómo y por qué los inversores confían en estos mercados. Ofrecemos dos contribuciones. Primero, a los debates teóricos sobre finanzas democráticas; y segundo, a un cuerpo más empírico de investigación interdisciplinar sobre inversión popular a través de un análisis cualitativo de 52 entrevistas originales con inversores en seis mercados de crowdfunding del Reino Unido. Nuestros datos se toman de un proyecto con la Autoridad de Conducta Financiera del Reino Unido para mejorar la protección de los inversores en estos mercados. Utilizando un enfoque de sociología económica, encontramos que los inversores: movilizan redes integradas para establecer confianza en el crowdfunding; están motivados por las expectativas de «rendimientos combinados»; prefieren herramientas de inversión automatizadas si carecen de experiencia; y típicamente invierten con fondos que han destinado a perder. Concluimos que se requiere una mayor protección de los inversores para la financiación colectiva para ayudar a democratizar las finanzas
- English
  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 cross-disciplinary 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.
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