The role of crowdfunding in moving towards a sustainable society

Testa, Stefania; Nielsen, Kristian Roed; Bogers, Marcel; Cincotti, Silvano

doi:10.1016/j.techfore.2018.12.011

Cited by 67 publications

(60 citation statements)

References 51 publications

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“…The key challenges presently faced by the equity crowdfunding industry relate to investor returns, share liquidity, and platform profitability (Schwienbacher 2019). Although the long-term term outcome of the industry is yet to be seen, equity crowdfunding carries potential to offer a positive impact on new venture financing and development (Brown et al 2019;Mochkabadi and Volkmann 2020) and even on the wider society and environment (Testa et al 2019;Vismara 2019). To entrepreneurial ventures, equity crowdfunding offers an alternative form of equity financing that they may turn to out of choice or out of necessity (Walthoff-Borm et al 2018).…”

Section: Resultsmentioning

confidence: 99%

Equity Crowdfunding: Principles and Investor Behaviour

Lukkarinen

2020

Advances in Crowdfunding

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The chapter provides a topical summary of the present research knowledge of equity crowdfunding. It describes the typical equity crowdfunding process, investor characteristics, and investor motivations. Recognizing the limited due diligence efforts of the crowd despite the presence of high information asymmetries, the chapter presents the role of platforms in evaluating and preselecting target ventures. Furthermore, it highlights the importance of rapidly observable campaign features and signals of venture quality in investor decision making, while also emphasizing the relevance of experienced investors and the herding tendency of crowdinvestors. The chapter offers a comparison of equity crowdfunding investors with traditional providers of early-stage equity financing including micro funders, angel investors, and venture capital funds. It concludes with a discussion of the challenges and potential of equity crowdfunding.

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Section: Resultsmentioning

confidence: 99%

Equity Crowdfunding: Principles and Investor Behaviour

Lukkarinen

2020

Advances in Crowdfunding

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“…Nevertheless, the academic literature does not share the same enthusiasm, and, due to diverging results emerging from research (Bartenberger & Leitner, ; Bonzanini, Giudici, & Patrucco, ; Calic & Mosakowski, ; Hemer, ; Hörisch, ; Lehner, ), the debate on whether CF could be considered an effective way to support sustainability‐oriented initiatives is still open (see Testa, Nielsen, Bogers, & Cincotti, ; Messeni Petruzzelli, Natalicchio, Panniello & Roma, ). In this debate, we suggest that the objective of proving whether CF may benefit (or not) sustainability‐oriented initiatives could be misplaced.…”

Section: Introductionmentioning

confidence: 99%

Crowdfunding as a tool to support sustainability‐oriented initiatives: Preliminary insights into the role of product/service attributes

et al. 2019

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A common goal of current research seems to uncover whether crowdfunding (CF) could be considered an effective way to support sustainability-oriented initiatives in securing funding, due to diverging results emerging from literature. We claim that the objective of proving whether CF may benefit sustainability-oriented initiatives could be misplaced; rather, we deem more fruitful to understand how critical are some attributes of products/services pursued within CF campaigns to benefiting sustainability-oriented initiatives and increasing their odds of success in CF. We focus on food-related projects as in this sector, sustainability issues apply more than to any other human activities and construct a unique sample of food CF campaigns launched and ended in the European Economic Area countries on the world's most popular reward-based CF platform, that is, Kickstarter. We identify campaigns with a sustainability orientation and perform an in-depth qualitative analysis, which allows us to classify them into meaningful clusters and subclusters. Our research suggests that the emphasis on egoistic/self-centered product attributes, rather than on altruistic/society-centered attributes, is generally more crucial to facilitate CF support to sustainability-oriented projects. However, the emphasis on altruistic/society-centered attributes emerges to be more beneficial for initiatives specifically supporting local products. Our results also suggest that rewardbased CF is not suitable for sustainability-oriented projects targeting disadvantaged individuals/groups. These results offer both theoretical and empirical contributions to the literature as well as practical implications.

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“…As a result, we illustrate how crowdfunding enables entrepreneurs to address the three dimensions of sustainability and various SDGs. In this way, we demonstrate the role of crowdfunding in moving towards a sustainable society and contribute to the emerging research field of sustainable crowdfunding (Testa et al 2019). In addition, we add to the literature on sustainable entrepreneurship by contributing to the limited research on funding of sustainable ventures and identifying an alternative solution for their access to adequate funding.…”

Section: Resultsmentioning

confidence: 74%

“…In this way, crowdfunding helps to "democratise" innovation as it allows entrepreneurs who would otherwise lack the resources to find funding and markets, to erase geographic, social, and economic boundaries of innovation (Mollick and Robb 2016). Testa et al (2019) argue that crowdfunding represents a novel socio-technical practice with the potential to upscale and transform financial and (potentially) sustainable regimes.…”

Section: Success Of Sustainable Crowdfunding Campaignsmentioning

confidence: 99%

“…Crowdfunding for sustainability has also become an emerging research area. Lately, the topic has attracted considerable interest among researchers (Motylska-Kuzma 2018; Testa et al 2019;Wehnert et al 2019;Petruzzelli et al 2019). However, ongoing discussion around success of sustainable crowdfunding campaigns has displayed rather contradictory findings (Hörisch 2015;Calic and Mosakowski 2016) and more research in this field is necessary.…”

Section: Introductionmentioning

confidence: 99%

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Crowdfunding Sustainability

María

Otte

Drozdova

2020

Advances in Crowdfunding

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The chapter focuses on using crowdfunding for financing sustainable projects, that is projects aiming to extend their goal beyond market success and provide benefit to the larger part of society. The chapter discusses the definition and dimensions of sustainable development and sustainable entrepreneurship and provides an overview of the existing literature on crowdfunding of sustainable projects. The authors also review four European sustainability-oriented crowdfunding platforms representing different crowdfunding models. This review reveals that sustainable projects have rather high success rates in crowdfunding and may address all the three dimensions of sustainable development. However, environmental dimension gets the most attention. All the crowdfunding models are relevant for sustainable projects; yet, Loan-based crowdfunding seems to have the highest success rates. Moreover, focus on a particular dimension of sustainability may influence the choice of the crowdfunding model.

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The role of crowdfunding in moving towards a sustainable society

Cited by 67 publications

References 51 publications

Equity Crowdfunding: Principles and Investor Behaviour

Equity Crowdfunding: Principles and Investor Behaviour

Crowdfunding as a tool to support sustainability‐oriented initiatives: Preliminary insights into the role of product/service attributes

Crowdfunding Sustainability

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