Investor motivations of a New Zealand biopharma start-up: Angels and crowdfunders. (November 2019)

• Record Type: Journal Article
• Authors: Miller, Andrea; Scahill, Shane; Warren, Lorraine
• Other Names: Mac an Bhaird Ciarán guest-editor.; Owen Robyn guest-editor.; Freel Mark guest-editor.
• Is Part Of: International journal of entrepreneurship and innovation. Volume 20:Number 4(2019)
• Page Start: 252
• Page End: 262
• Publication Date: 2019-11
• Subjects: biopharma -- business angels -- crowdfunding -- investor motivation -- start-up; Entrepreneurship -- Periodicals; Business -- Periodicals; Entrepreneurship; Business; Periodicals; 338.0405
• DOI: 10.1177/1465750319877391
• Languages: English
• ISSNs: 1465-7503

Abstract

The process of funding any start-up can be a complicated process, with a range of options depending on the nature and stage of the enterprise. This article compares the motivations of Business Angels with equity-based crowdfunders of a New Zealand start-up biopharma company, XYZ, who were developing a therapy for a specific disease. The study finds that contrary to previous research, nonfinancial rewards do play a role in crowdfunding investments. Our results are based on a survey, founded on an Investment Motivational Model (4Ps) with components including Philanthropy, People, Product, and Profit.