Crowdfunding: a systemic framework of benefits

Abstract

PurposeCrowdfunding (CF) is a fast-developing and multifaceted phenomenon at the intersection of entrepreneurship, technology, finance and sociology. Although it is an alternative way to fund innovative projects using the internet, CF can provide great value other than money. Nevertheless, only few studies have been conducted to shed light on such additional benefits. The purpose of this paper is to present an integrative model of benefits of CF for the successful undertaking and sustainability of an entrepreneurial initiative.Design/methodology/approachBased on a systematic review of literature, a preliminary taxonomy is first identified. Industry experts, campaign creators and the analysis of real cases are then used to progressively build a model of 11 areas and 85 categories of benefits deriving from CF.FindingsThe paper presents a comprehensive model of benefits of CF for the project, the start-up and the creator related to the following aspects: viability, costs, customer, demand, distribution, employees, fund, strategy, market, partners, personal, product.Research limitations/implicationsThe study does not distinguish among different forms of CF. Besides, only benefits are studied whereas potential drawbacks and challenges are not considered. Further research is thus needed to complement the framework along such two additional areas of investigation.Originality/valueThe theoretical framework is an exhaustive snapshot of the benefits of a CF campaign and it can thus be assumed as a starting point for future and empirical studies. Moreover, the paper can support platforms managers in the design of values-added tools aimed to improve attractiveness and project creators in campaign design and management.