Crowdfunding: A Literature Review and Research Directions

Moritz, Alexandra; Block, Joern

doi:10.1007/978-3-319-18017-5_3

Cited by 156 publications

(79 citation statements)

References 101 publications

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“…They are: (1) there have to be a business project, which necessitates funding; (2) there have to be several investors and those investors want to assist to carry out of that project; and (3) the internet will connect investors and entrepreneurs (Bottiglia & Pichler, 2016). Based on the works of Moritz and Block, (2016); Hagedorn and Pinkwart, (2016); Wardrop et al (2015); Bellefl amme and Lambert (2014); Dix and Luzar, (2014); Wilson and Testoni, (2014); Pierrakis and Collins, (2013); Harrison and Mason (1992);De Buysere et al (2012);and Hemer (2011) the dimensions of crowdfunding are donation, sponsoring, pre-selling, social-lending, and equity-crowdfunding. Donation indicates individuals will allocate money to a business project or an innovative idea to carry out of that business project or idea as well as not to anticipate whatsoever in conversion of that allocated fund.…”

Section: Crowdfundingmentioning

confidence: 99%

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Ramification of crowdfunding on Bangladeshi entrepreneur’s self-efficacy

Hoque¹,

Awang²,

Muda³

et al. 2018

10.5267/j.ac

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The novel funding sources turn out to be important for the Small and Medium Enterprises (SMEs) sector all over the world especially after 2007-2008 world financial crisis. Thus, to develop a new business idea and start-ups, SMEs need a sufficient amount of capital. However, after the financial crisis in 2008, SME sector faced the challenges of attracting new capital. Therefore, an innovative method of fundraising for SME was introduced as crowdfunding. Crowdfunding indicates financing a project or an idea via the internet owing the help from the many investors or donors of a society. Since there are limited works about the influence of Crowdfunding on Entrepreneur Self-efficacy (ESE), hence, to minimize the research gap and to achieve the objective of the study, we conduct a quantitative research among 190 entrepreneurs in Bangladesh using crowdfunding based on Social Cognitive theory. The data were analyzed using Structural Equation Modeling (SEM) in IBM-SPSS-Amos 25.0 and the stated hypotheses were tested. The study found a direct and positive effect of Crowdfunding on Entrepreneur's Self-efficacy (β=0.924, P=.001). Overall, the result has landed support for crowdfunding, which indicates that it can influence on self-efficacy of entrepreneur. In order to determine the need of crowdfunding, we have explained and statistically demonstrated how crowdfunding can provide a supplementary channel where firms can gain finance and to create self-efficacy of entrepreneurs through exploiting the potential of internet..

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Section: Crowdfundingmentioning

confidence: 99%

“…However, in the equity crowdfunding, the donors are offered a definite number of shares in an economic project. According to Moritz and Block (2016), it is the trickiest factor in the crowdfunding theme (Hagedorn & Pinkwart, 2016;Dix & Luzar 2014). Therefore, crowdfunding A.S.M.M.…”

Section: Crowdfundingmentioning

confidence: 99%

Ramification of crowdfunding on Bangladeshi entrepreneur’s self-efficacy

Hoque¹,

Awang²,

Muda³

et al. 2018

10.5267/j.ac

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“…The traditional funding is described by three circles [9][10][11] : organizations with the money (lenders), parties that need the money (borrowers) and the intermediate (those that deliver the money from the lender to the borrower). These sides are presented in Table 1, and Fig.…”

Section: Current Funding Alternativesmentioning

confidence: 99%

“…[1][2][3][4][5][6][7][8][9][10][11][12][13][14][15][16][17][18][19] Solving the issues that stem from a biased management depends on who controls the fund management and the strength of the in°uence of the crowd on the management, what we can de¯ne in the better case, \crowdfunding with crowd management" to create the unbiased crowdfunding. The entity can fund everything ranging from private people to businesses.…”

Section: Crowdfunding: Challenges Problems and Solutionsmentioning

confidence: 99%

“…The funding to activities from the group of many citizens (that in most cases organize just to achieve the goal of the particular funding) [1][2][3][4][5][6][7][8][9][10][11][12][13][14][15][16][17][18][19] rather than e.g., banks, is de¯ned as crowdfunding. This can fund almost anything, ranging from the developments of musical albums, to constructing buildings, developing cars and This is an Open Access article published by World Scienti¯c Publishing Company.…”

Section: Introductionmentioning

confidence: 99%

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Customizing Crowdfunding Approaches to Replace “Biased” Funding

Flomenbom¹,

Mazaj²

2017

Rep. Adv. Phys. Sci.

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The purpose of this paper is to deal with crowdfunding approaches' strength to in°uence the society, in particular, reforming the funding power structure in the society, to restructure the society wealth distribution, and to increase the°ow of opportunities in the nation. The approaches that can do that include local crowdfunding from within businesses, crowd funds' entities that are combined with unbiased management, and those combined with unbiased bank's support. Local crowdfunding from within businesses is indeed a unique tool for¯nancial stability at the neighborhood level, yet also in the nation's level upon generalizations, where these can shift socio-economic-power to the citizens. In generalizing crowd funds' entities, these are of value to¯ght biases in case combined with unbiased management; \unbiased crowdfunding" might prove simpler to create and maintain than the alternatives. Some of the example of works that we performed with local businesses are presented in this paper.

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A cash‐strapped creator's reward‐based crowdfunding strategies with spot sales

Guo

Qian

et al. 2022

Naval Research Logistics

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Reward‐based crowdfunding with the all‐or‐nothing mechanism helps cash‐strapped creators raise funds from potential consumers to develop new products. However, this mechanism may hurt the creator in the long run because possible buying frenzies of strategic consumers will cannibalize the demand for spot sales if the project succeeds with overfunding. Through a two‐period model incorporating a crowdfunding period and a spot sales period, we find that strategic consumers' purchasing decisions depend on the probability that they will like the product in spot sales. Moreover, we show that crowdfunding cannot be used to finance when the setup cost that a creator needs to pay for the production is sufficiently high. In addition, for creators who can use crowdfunding to finance, contrary to the intuition that they should not take risks when the market uncertainty is high, we find the opposite results when we take the joint effect of the setup cost and market uncertainty into consideration. To be specific, when the market uncertainty is high and the setup cost is higher than a threshold, the creator can optimally choose the risky strategy. Furthermore, the creator may benefit from market uncertainty when a high setup cost is required to launch the product.

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Crowdfunding: A Literature Review and Research Directions

Cited by 156 publications

References 101 publications

Ramification of crowdfunding on Bangladeshi entrepreneur’s self-efficacy

Ramification of crowdfunding on Bangladeshi entrepreneur’s self-efficacy

Customizing Crowdfunding Approaches to Replace “Biased” Funding

A cash‐strapped creator's reward‐based crowdfunding strategies with spot sales

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