Business Commons^™

Making The World A Better Place: How Crowdfunding Increases Consumer Demand For Social-Good Products, Bonnie Simpson, Martin Schreier, Sally Bitterl, Katherine White

Management and Organizational Studies Publications

Crowdfunding has emerged as an alternative means of financing new ventures wherein a large number of individuals collectively back a project. This research specifically looks at reward based crowdfunding, where those who take part in the crowdfunding process receive the new product for which funding is sought in return for their financial support. This work illustrates that consumers make fundamentally different decisions when considering contributing their money to crowdfund versus purchase a product. Six studies demonstrate that compared to a traditional purchase, crowdfunding more strongly activates an interdependent mindset and, as a result, increases consumer demand for social-good products (i.e., …

Two Sides Of The Same Coin: Essays Investigating The Founder And Backer Dynamics Of Crowdfunding, Ruben Ceballos

Theses and Dissertations

Crowdfunding provides the opportunity for entrepreneurs to acquire capital for their projects by utilizing a platform that allows the masses to provide funds towards the completion of the project. Thus, it can be looked at as two sides of the same coin. On one side you have the entrepreneurs seeking the funds otherwise known as founders, and on the other are those that provide the funds also known as backers. The purpose of this study is to investigate what factors lead to founders successfully attaining their funding, what motivates backers to support the projects, and whether the founders can deliver …

Crowdfunding Platforms: Ecosystem And Evolution, Yee Heng Tan, Srinivas K. Reddy

Research Collection Lee Kong Chian School Of Business

Crowdfunding is the practice of seeking support from a large number of backers, each funding a small amount, in order to reach a specific funding goal. This monograph examines: (1) the field of crowdfunding, (2) how it has evolved, (3) the impact crowdfunding has on the fields of innovation, marketing and finance and (4) the factors that can affect crowdfunding outcomes. We view crowdfunding as complementary and transformative, increasing the efficiency of several existing processes such as idea generation and testing, fund raising and collection. We combine practitioner perspectives and research findings to provide insights on this subject. We explore …

Equity Crowdfunding In The United States: Evolution, Determinants And Performance, Kenny Ozuna

Theses and Dissertations

In recent years, equity crowdfunding has developed into an alternative form of early stage financing for startup firms. The main purpose of this dissertation is to understand the evolution, process and regulation of equity crowdfunding in the United States as well as assess the determinants of a successful campaign and whether this capital market lead to an enduring business.

The first essay examines the evolution, process and regulation surrounding equity crowdfunding. I establish a clear definition of crowdfunding and its restructuring of the music industry to establishing an alternative form of raising capital for nascent firms via equity crowdfunding. I …

Global Challenges And Regulatory Strategies To Fintech, Aurelio Gurrea-Martinez, Nydia Remolina

Centre for AI & Data Governance

The rise of new technologies has changed the operation, regulation and supervision of financial markets, bringing new challenges and opportunities for consumers, regulators, and financial institutions. This Article seeks to explore the most common regulatory strategies used by financial regulators around the world to address the challenges associated with the rise of fintech. These strategies include the imposition of bans, regulatory passivity, adoption of new legislation, permission on a case by case basis, and more interactive approaches such as innovation offices, accelerators and sandboxes. This Article argues that the adoption and desirability of each regulatory approach will depend on a …

Raising Funds In The Era Of Digital Economy, Deserina Sulaeman

Dissertations and Theses Collection (Open Access)

The rapid advancement in technology and internet penetration have substantially increased the number of economic transactions conducted online. Platforms that connect economic agents play an important role in this digital economy. The unbridled proliferation of digital platforms calls for a closer examination of the factors that could affect the welfare of the increasing number of economic agents who participate in them.

This dissertation examines the factors that could affect the welfare of agents using the setting of a crowdfunding platform where fundraisers develop campaigns to solicit funding from potential donors. These factors can be broadly categorized into three distinct groups: …

Understanding The Dimensions Of Medical Crowdfunding: A Visual Analytics Approach, Jie Ren, Viju Raghupathi, Wullianallur Raghupathi

Publications and Research

Background: Medical crowdfunding has emerged as a growing field for fundraising opportunities. Some environmental trends have driven the emergence of campaigns to raise funds for medical care. These trends include lack of medical insurance, economic backlash following the 2008 financial collapse, and shortcomings of health care regulations.

Objective: Research regarding crowdfunding campaign use, reasons, and effects on the provision of medical care and individual relationships in health systems is limited. This study aimed to explore the nature and dimensions of the phenomenon of medical crowdfunding using a visual analytics approach and data crawled from the GoFundMe crowdfunding platform in 2019. …

Liability Of Newness, Startup Capabilities And Crowdfunding Success, Sahangsoon Kim

Asia Marketing Journal

Though crowdfunding has emerged as a cost-effective means to market innovative products and a channel for financial resource acquisition, our understanding about what makes a successful crowdfunding is still limited. This study is motivated by the presence of the inconsistency that both entrepreneurs and investors pay more attention to capabilities required for developing prototype products rather than capabilities needed to deliver the promised products in crowdfunding. By drawing insights from studies about liability of newness and legitimacy in institutional theory, this study argues that startups can overcome the liability of newness, earn investor trust, and successfully complete crowdfunding campaigns by …