Nonetheless the large body of knowledge rapidly accumulated on crowdfunding as well as the growing relevance of this phenomenon for sustainability, there are very few studies on the role of ...crowdfunding for sustainability-oriented projects, and many related issues are still far from being fully understood. This signalises a clear need for unveiling the main dynamics of the relationship between crowdfunding and sustainability, and also opening up useful directions for future research on this relationship. To conceptualize the implications of crowdfunding for sustainability, we propose and use a framework, encompassing five dimensions, namely the project creator, the backers, the campaign itself, the crowdfunding platform, the outcomes of crowdfunding campaigns. By interpreting and fine-tuning the findings emerging from the extant crowdfunding literature to the specific context of sustainability-oriented projects, we develop propositions that provide important implications for this type of initiatives. These implications can guide scholars in finding new paths of research on the topic, as well as provide practitioners with an instrument to better understand the relevance of the crowdfunding phenomenon for sustainable initiatives and make more informed decisions.
•We propose a five-dimension framework to interpret the crowdsourcing phenomenon.•Findings from the literature related to sustainability-oriented projects are highlighted.•Propositions providing implications for sustainable crowdfunding projects are developed.
Crowdfunding is a rapidly growing technology-enabled process that has the potential to disrupt the capital market space. In order for this process to work efficiently, it is important to clarify the ...issues surrounding the phenomenon from the founders’, the backers’, and the technology providers’ viewpoints. We begin with an ecosystem view to understand the stakeholders and their roles in the crowdfunding process. We review the literature with a focus on how current research fits into the overall crowdfunding phenomenon. Guided by typology and classification research approaches, we identify six distinct crowdfunding business models: private equity, royalty, microfinance, peer-to-peer lending, rewards, and donation. Based on identified roles and crowdfunding business models, we propose a conceptual research framework. We conclude by showing how current research fits into our proposed framework and offer suggestions for future research directions.
This research draws data from survey responses and actual transaction data to examine the effect of primary motivations on funding behavior in reward-based crowdfunding platforms. Findings show that ...altruistic motivations are associated with early funding, and with larger funding in the early stages. In contrast, reward motivations are associated with late and larger funding across stages. Furthermore, women funders show stronger relationships between altruistic motivations and funding timing, especially in the early stages. This research advances understandings about reward-based crowdfunding, especially about individual funder behavior and theories of motivation. Practically, the findings suggest that project creators can increase funding success by promoting different types of motivations and targeting different demographic groups according to funding stages. Specifically, creators may highlight altruistic giving (rewards) in their campaigns at early (late) stages. They should also target women when promoting altruistic motivations at early stages.
This study provides a comparative analysis of the success factors of equity and reward‐based crowdfunding. We find that information signals related to venture/project quality are important ...determinants of both equity‐based and reward‐based crowdfunding success. However, signals on founder information matter only for equity‐based but not for reward‐based crowdfunding. Our study exemplifies the varying role of success factors that depend on the type of crowdfunding projects and provides a basis for further research to compare different forms of crowdfunding.
Crowdfunding has emerged as an effective method to raise fund for new venture creation and success. Nonetheless, our knowledge is limited about motivations for the selection into and financial ...support of crowdfunding, specifically for donors in charity crowdfunding who do not gain monetary rewards for their contributions. The main purpose of this study is to explore the motivations of individuals who donate money for funding the projects in charity crowdfunding platforms. We analyzed qualitative data derived from the real experiences of 13 donors who were involved in funding charity crowdfunding projects. The findings revealed a combination of intrinsic and extrinsic motivations directed funding behaviour of donors. More specifically, this study suggested a set of intrinsic individual motivations including shared problems, values, thoughts and beliefs, helping a minority, technical knowledge and capacity of the project to learn from and helping to realize ideas and create value that led donations to charity crowdfunding. Furthermore, this research explored contribution to fulfilling collective efforts, perceived effectiveness and few risks of crowdfunding as the intrinsic social motivations for donations to charity crowdfunding projects. Finally, this study contributed solving social problems, improving people's awareness and knowledge about the problems, and creating mobility and action in the people and society to solve the problems as the social extrinsic motivations that regulated donors to financially support charity crowdfunding. The findings are discussed in light of their implications for the development of crowdfunding theory, practice, and research.
As a special type of social information systems, crowdfunding platforms draw researchers’ attention in recent years for their increasing popularity. In supplement to big-data analyses on ...user-generated content, behavioral research using survey and interview observations provide insights on why people like or hesitate to use such platforms. Nevertheless, extant studies focus on user intention and equity/reward-based projects, leaving the knowledge body on why people actually engage in donation-based crowdfunding underdeveloped. Based on Activity Theory, this study explores the critical success factors of crowdfunding in terms of website acceptance, crowd familiarity, and donation reciprocity. It then develops a research model that adapts relevant constructs from e-commerce and charitable behavior literature to predict user trust and readiness leading to actual donation. To test the hypothesized relationships, a structural equation modeling analysis was conducted on 744 survey responses collected from crowdfunding platform users in multiple countries. Results provide supporting evidence to most hypotheses and reveal the influential factors of technological utilization and social collaboration in the crowdfunding activity.
•Crowdfunding platforms are gaining popularity in recent years.•Research on donation-based crowdfunding behavior is limited.•This study explores the critical success factors of crowdfunding.•SEM analyses on 744 survey responses collected from multiple countries.•Results support the importance of technology, interaction and collaboration.
Factors Affecting Crowdfunding Success Liu, Zhunzhun; Ben, Shenglin; Zhang, Ruidong
The Journal of computer information systems,
03/2023, Volume:
63, Issue:
2
Journal Article
Peer reviewed
Crowdfunding is an alternative financing method that is different from traditional startup financing. The purpose of this paper is to comprehensively analyze and identify all the factors that ...significantly affect crowdfunding success by conducting a meta-analysis over previous studies produced in the last decade. An initial pool of 592 studies were collected. Eventually 53 qualified studies were selected and used in the current paper. From these 53 studies, 26 potential factors are carefully extracted and categorized. These factors are then statistically analyzed to decide which ones can significantly affect crowdfunding success. Our results have shown that crowdfunding success depends on a collection of significant factors, which include fundraiser's human capital, project location, team size, investor's experience, project quality and the interactivity on the crowdfunding platform. On the other hand, there are also factors such as herd behavior and social platform postings which have no significant effect on crowdfunding success.
Equity crowdfunding: A new phenomena Vulkan, Nir; Åstebro, Thomas; Sierra, Manuel Fernandez
Journal of Business Venturing Insights,
June 2016, 2016-06-00, Volume:
5
Journal Article
Open access
Crowdfunding has recently become available for entrepreneurs. Most academic studies analyse data from rewards-based (pre-selling) campaigns. In contrast, in this paper we analyse 636 campaigns, ...encompassing 17,188 investors and 64,831 investments between 2012 and 2015, from one of the leading European equity crowdfunding platforms. We provide descriptive statistics and carry out cross-campaign regression analysis. The descriptive statistics address its size, growth and geographic distributions in the UK. The regressions analyse which factors are associated with the probability of a successful campaign. We find some similarities and some interesting dissimilarities when comparing the descriptive statistics and regression results to research on rewards-based crowding. The data show that equity crowdfunding will likely pose great challenges to VC and business angel financiers in the near future. We discuss some research challenges and opportunities with these kind of data.
•Crowdfunding has recently become available for entrepreneurs.•Most academic studies analyse data from rewards-based (pre-selling) campaigns.•We provide descriptive statistics and carry out cross-campaign regression analysis for one UK equity crowdfunding platform.•The regressions analyse which factors are associated with the probability of a successful campaign.
The aim of the article is to identify and evaluate the operation of crowdfunding platforms in Poland in 2012 - 2022.
The research covered crowdfunding platforms in the donation and equity model, with ...an emphasis on equity crowdfunding platforms. In order to verify the hypothesis, the author used inductive-deductive inference and desk research analysis. The Polish crowdfunding market is fragmented. Between 2011 and 2022, several dozen platforms were created, some of which remained inactive (no fundraising took place on them), and several collections took place on some. The dominant model of crowdfunding on platforms was and still is donation crowdfunding. The prospects for the development of donation crowdfunding are huge, because it meets real needs. There are and will be many people who need help, and on the other side there are people who have the opportunity to help and want to do it.
A rapid increase in equity crowdfunding (more platforms, more issues, more companies) was also in the resent years observed. The development prospects for the equity crowdfunding have also changed. An important step was to regulate and supervise the market.
Crowdfunding is becoming a popular way of financing healthcare. Some commentators suggest that crowdfunding could serve as a new institution that fills gaps in conventional safety nets. Others ...suggest that crowdfunding is simply another way of obtaining help from family, friends, and local associations, and has little transformative potential. We provide one of the first quantitative analyses of medical crowdfunding, and the first to model the broader societal context in which campaigns are situated. We scraped data on US medical campaigns from the leading platform and combined them with county-level socioeconomic data, to model predictors of campaign frequency and success. Our findings suggest that many seek help from crowdfunding when both formal and informal conventional safety nets fail them. Significantly more campaigns are initiated in US counties with poorer private insurance coverage, lower social security provision, fewer social associations, and weaker cultures of giving. However, few campaigns reach their goals where most needed. More successful campaigns are found in counties that are wealthier and healthier and have more social associations. Crowdfunding is not merely 'friendfunding': fundraisers can increase their chances of success by having their appeals widely shared on social media. However, the returns to sharing are greater for campaigns initiated in wealthier areas. Overall, our findings suggest that medical crowdfunding is an entrepreneurial safety net: one where protection is not afforded universally or on the basis of need, but on the basis of one's ability to appeal to the audience and out-compete rivalling needfuls.
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