Stitching Sustainability with Capital: Unravelling the Potential of Equity Crowdfunding for Sustainable Fashion Firms1

Frame of the research. The paper is focused on the interplay between equity crowdfunding (ECF) and the integration of sustainable practices within the fashion sector. It explores the intersection of finance, sustainability and fashion, to shed light on ECF’s potential to lead a paradigm shift towards more sustainable business models. Purpose of the paper. This study aims to deepen the complex interplay between ECF and sustainable innovation, with the objective of identifying how ECF may act as a catalyst for sustainable transformation within the fashion industry. The goal is to highlight ECF’s strategic potential to foster sustainable business practices in fashion. Methodology. Our study employed a comprehensive exploratory multiple case study methodology, examining eight fashion firms that successfully launched ECF campaigns. We conducted thematic content analysis through qualitative coding on data from semi-structured interviews with firms’ representatives. Results. The findings delineate four main themes emerging from the analysis of ECF and sustainability within the fashion domain. Results showcase ECF as a potential mechanism to encourage sustainable innovation in fashion, by also facilitating a deeper engagement with investors and consumers. Research limitations. The specificity of the sample selection and geographical focus may circumscribe the generalisability of our findings. The potential scarcity of comprehensive data may affect the thoroughness of our analysis. Lastly, the qualitative methodological approach introduces the potential for interpretative bias. Managerial implications. This study underlines the strategic utility of ECF in meeting social and economic corporate sustainability goals, urging firms to integrate sustainable practices across their operations and maintain transparent stakeholder communication. Originality of the paper. This research enriches the discourse on sustainable finance and fashion by elucidating the role of ECF in driving sustainability. It suggests ECF as a crucial facilitator of sustainable innovation and as a financial tool for industries towards a more sustainable trajectory.