Crowdfunding: A Literature Review and Research Directions

Moritz, Alexandra; Block, Joern

doi:10.2139/ssrn.2554444

Cited by 85 publications

(88 citation statements)

References 74 publications

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“…Compared with other funding options (business angels or venture capital funds), CF offers some advantages for young entrepreneurs calling for funds, but also involves some risks, as the relationships established between founders and funders are mainly based on the interaction facilitated by the online environment of the platforms or other social media (Belleflamme et al 2014;Moritz and Block 2016).…”

Section: Introductionmentioning

confidence: 99%

Crowdfunding: An Exploratory Study on Knowledge, Benefits and Barriers Perceived by Young Potential Entrepreneurs

Bernardino

Santos

2020

JRFM

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Crowdfunding (CF) has experienced impressive growth in recent years with the development of internet and information technologies that increased the participation of the “crowd” to fund entrepreneurial projects. Young entrepreneurs, especially well-qualified students, have recently begun to play a new role in the economy by launching new ventures in niche markets. The aim of the present paper is to provide a deeper understanding of CF among Portuguese young potential entrepreneurs as an alternative funding mechanism, by discussing its main characteristics and the perceived benefits and barriers that might drive young entrepreneurs to post a project on a CF platform or discourage its use. Through an online survey, we query well-qualified students about the knowledge they have about crowdfunding and benefits and barriers that can increase or reduce the possibility of funding to launch a new venture. The results show that potential young entrepreneurs have moderate knowledge about CF. Consequently, they are not able to explore all the business models available, specifically the models related to investment (lending and equity). The respondents perceive several benefits of the use of CF that go beyond the financial advantages, such as the communication of the project to a wider audience and the additional feedback from potential customers. The perceived barriers that could deter the use of CF are related to the implementation of the CF campaign, although contextual constraints have been mentioned.

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Section: Introductionmentioning

confidence: 99%

Crowdfunding: An Exploratory Study on Knowledge, Benefits and Barriers Perceived by Young Potential Entrepreneurs

Bernardino

Santos

2020

JRFM

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“…Crowdfunding research is quickly growing. Moritz and Block (2014); Kuppuswamy and Bayus (2015); Alegre and Moleskis (2016); Cumming and Johan (2017); Cumming and Hornuf (2018); Estrin et al (2018); Mochkabadi and Volkmann (2018) and Cumming et al (2019) provide good reviews of the literature in this field. Several topics seem to emerge that are closely related to the present paper.…”

Section: Literature Reviewmentioning

confidence: 99%

Crowdfunding in a Competitive Environment

Miglo

2020

JRFM

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Crowdfunding has mostly been used to finance very unique projects. Recently, however, companies have begun using it to finance more traditional products where they compete against other sellers of similar products. Major crowdfunding platforms, Kickstarter and Indiegogo, as well as Amazon have launched several projects consistent with this trend. This paper offers a model where two competing firms can use crowdfunding prior to direct sales. The model provides several implications that have not yet been tested e.g., (1) Firms can use crowdfunding strategically to signal a high level of demand for their products; (2) (Reward-based) crowdfunding is procyclical; (3) A higher platform fee may lead to higher firm profits in equilibrium; (4) Competition increases the chances of using crowdfunding compared to the monopoly case; (5) A non-monotonic relationship exists between the risk of crowdfunding campaign failure and firm profit.

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“…An important advantage of this form of financing is the limited legal regulations on crowdfunding. The fact that free financing is based on the Internet community sets new possibilities for raising funds to start or expand business activity in the digital age (Crowdfunding, 2015; Moritz & Block, 2016).…”

Section: Diagram 1: Basic Crowdfunding Classificationmentioning

confidence: 99%

Crowdfunding in the Wider Perspective Investment Crowdfunding: Competition Between Regulations, Institutions, and Economic Freedom

Dziawgo

2019

E-Finanse

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JEL classification: D24, D53, G23, K23The aim of this article is to present Investment Crowdfunding (ICF) in a perspective wider than merely as a new form of financing a certain category of business ventures. Selected aspects of ICF as a phenomenon that is a manifestation of the conflict between economic freedom and regulations and financial market institutions will be emphasized. New concepts of the part of the modern economy in the period of digitization, referred to as the collaborative economy, mesh economy, or sharing economy, should also be taken into account. The issues of excessive and restrictive regulation of the financial market will be presented in this context, as well as the constraints and risk factors of ICF operation and the Polish ICF experience. The study hypothesises that Investment Crowdfunding is a viable alternative for financing micro and small economic projects, if compared to the traditional and over-regulated forms of financing. The usefulness of Investment Crowdfunding concerns primarily economic projects of the start-up category. The study uses the following research methods: critical analysis of the literature of the issue, descriptive and comparative analysis, case study, and deduction. The theoretical considerations and examples presented in the article should be treated with appropriate research caution. However, they make it possible to positively verify the hypothesis.

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Crowdfunding: A Literature Review and Research Directions

Cited by 85 publications

References 74 publications

Crowdfunding: An Exploratory Study on Knowledge, Benefits and Barriers Perceived by Young Potential Entrepreneurs

Crowdfunding: An Exploratory Study on Knowledge, Benefits and Barriers Perceived by Young Potential Entrepreneurs

Crowdfunding in a Competitive Environment

Crowdfunding in the Wider Perspective Investment Crowdfunding: Competition Between Regulations, Institutions, and Economic Freedom

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