Creating A Network Model of Potential Risks in Equity Crowdfunding
Small businesses and start-ups typically have difficulties with finance at their businesses early stages. To solve this matter, Equity Crowdfunding (EC) has been used as a helpful method to raise funds from people (crowd) in the recent decade. People help a new business in terms of the fund; instead, the company provides its share. But there are many potential risks that are unclear for people interested in investing. This research wants to provide a network model of potential risks to give investors a better understanding of risks and their interrelationship. The output of this research would be reliable knowledge for decision-making for Maxpro Financials and other prospective Canadian investors. By improving the decision-making power of Canadian individuals or institutions, they can invest with significantly greater awareness of potential risks. Ignorance leads prospective investors not to invest. However, recognizing the risks and knowing their power through the network model of risks in EC will be a helpful tool to encourage and promote Canadian crowdfunding under Canadian context factors.