EVALUATING CURRENT STAGE OF EQUITY CROWDFUNDING ADOPTION IN INDONESIA: AN EXPLORATORY STUDY
Equity crowdfunding has emerged as an innovative new financing model enabling startups and SMEs to raise funds online from a large pool of retail investors. However, balancing risks and sustaining growth as a pioneering sector necessitates nuanced understanding of operational processes and outcomes....
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| Format: | Theses |
| Language: | Indonesia |
| Online Access: | https://digilib.itb.ac.id/gdl/view/80158 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | Equity crowdfunding has emerged as an innovative new financing model enabling startups and SMEs to raise funds online from a large pool of retail investors. However, balancing risks and sustaining growth as a pioneering sector necessitates nuanced understanding of operational processes and outcomes. This exploratory study investigates equity crowdfunding localization in Indonesia through an indepth case study of the LandX platform.
Data collection comprised interviews with key LandX personnel and review of internal documents relevant to due diligence, investor management, regulations and business impact. Findings reveal LandX conducts extensive vetting of potential issuers based on weighted scoring metrics assessing financials, growth indicators and founder credentials. Tailored communication addresses varied investor incentives spanning portfolio diversification to personal passions. Strict regulatory compliance is supplemented by proactive transparency exceeding formal requirements. Qualitative insights indicate accelerated growth for funded ventures, but quantified impact data remains limited.
Overall, LandX exemplifies balanced progress and judicious navigation needed to advance inclusive fintech innovation, highlighting needs for calibrated outcome expectations, expanded regulations, customized user engagement and evidencebased practices as the model evolves. As one of the first scholarly examinations of equity crowdfunding localization in Indonesia, the study elucidates intricacies of establishing this sector to inform policies and platforms seeking to equitably expand financial access. |
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