Religious investors and equity crowdfunding success

This study examines how Islamic religiosity influences equity crowdfunding success through messages on crowdfunding platforms in Türkiye, which lacks a sharia governance framework for financial technology (fintech). As the first empirical analysis of the role of Islamic religiosity in equity crowdfunding performance, it contributes to the literature. Using data from 95 crowdfunding campaigns conducted between 2021 and 2024 (79 Islamic and 16 conventional), we show that Islamic labeling and messaging affect campaign outcomes. Our findings reveal that Islamic equity crowdfunding campaigns attract 37.1 percent higher funding and 11.7 percent more investors, with higher success rates, than campaigns by their conventional counterparts. Explicit signals of sharia compliance though messaging enhance crowdfunding performance, as the volume of these messages is positively correlated with funding outcomes. The study demonstrates that religious signaling reduces information asymmetry and builds trust among faith-driven investors, providing crucial insights for platforms that operate in markets without a formal Islamic finance framework.