Scalability of Platforms for Social Enterprise Equity Crowdfunding: The Impact of Investor Attitude on Network Effects in Denmark

Mie Boye Rasmussen & Freja Ruiya Vulff

Student thesis: Master thesis


The scope of this paper is to answer the research question How can platforms for social enterprise equity crowdfunding be constructed to enhance scalability? It is argued that social enterprises have the potential to address social and environmental issues and might even do so better than purely social alternatives. However, many social enterprises face lack of funding and are experiencing a funding gap. To overcome this issue, equity crowdfunding has been identified as a potential solution. To meet the increasing demand for funding, the supply of equity crowdfunding and thus the platforms enabling this must scale. By applying a combined framework consisting of platform business model theory and customer value propositions, network effects were identified. The network effects arising from the application of customer value propositions led to a discussion of how network effects enhance the conditions for scalability of the platform. In conclusion same-sided and cross-sided network effects are enabled by the integration of the identified value propositions which may influence the construction of an equity crowdfunding for social enterprise platform.

EducationsMSc in Management of Innovation and Business Development, (Graduate Programme) Final ThesisCand.merc. Customer and Commercial Development, (Graduate Programme) Final Thesis
Publication date2020
Number of pages192
SupervisorsThomas Michael Brinch-Pedersen