Crowdfunding Activity Research Articles

Abortion-related crowdfunding post-Dobbs.

Previous research on abortion-related crowdfunding campaigns found that they are impacted by stigma around abortion and rarely successful. This paper analyzes crowdfunding activity in the US following a leak of the Supreme Court decision in Dobbs. V. Jackson Women's Health Organization, a time period that saw increased financial support of abortion access funds. Crowdfunding campaigns that included "abort" or "abortion" and were created between May 2 and November 8, 2022 were recorded from the GoFundMe and GiveSendGo crowdfunding platforms. These campaigns were reviewed for whether they were US based and sought funding where abortion was used as a justification for support. Included campaigns were assigned a campaign recipient type: (1) Organizations providing abortion access; (2) Organizations seeking legal protection for abortion; (3) Individuals seeking abortion access; (4) Organizations seeking to reduce abortion access; and (5) Individuals with needs resulting from choosing not to access abortion. The authors also identified four types of rationale for supporting these campaigns. Following a leak of the Dobbs decision, 398 abortion-related crowdfunding campaigns in the US raised over $3.8 million from over 50,000 donations. Campaigns supporting abortion access organizations raised higher median amounts than organizations seeking to reduce abortion access. Individuals seeking abortion access raised higher median amounts than individuals who chose not to terminate a pregnancy. In a reversal from pre-Dobbs crowdfunding, abortion access campaigns tended to outperform other abortion-related campaigns. It is not clear how long-lived this change in support will be and campaigners remain vulnerable to changes in platforms' content moderation policies.

The Position and Role of the Sharia Supervisory Board in Ensuring Sharia Compliance Equity Crowdfunding in Indonesia

Fundraising using the equity crowdfunding method has experienced rapid development and is in high demand from the public. In order to maintain the credibility of the implementation of Islamic securities crowdfunding, it is essential to establish a sharia supervisory board to supervise the offering of sharia-compliant securities employing information technology-driven crowdfunding service platforms. This article aims to discuss and analyze the position and role of the sharia supervisory board within the system, as well as the level of compliance with sharia principles in the implementation of equity crowdfunding in Indonesia. The research method used in this article is a type of normative legal research that relies on secondary data sources obtained through a literature review. The legal protection for the existence of a sharia supervisory board in sharia equity crowdfunding in Indonesia is regulated in POJK Number 57/POJK.04/2020 and Fatwa Number 140/DSN-MUI/VIII/2021. The sharia supervisory board has a very strategic role in ensuring sharia compliance in every equity crowdfunding activity in Indonesia. In order to maintain the credibility of sharia equity crowdfunding in the future, it is essential to ensure that every aspect of operations complies with sharia principles by maximizing the existence of a sharia supervisory board.

ANALISIS YURIDIS SECURITIES CROWD FUNDING DALAM PERSPEKTIF UNDANG-UNDANG PENANAMAN MODAL DAN UNDANG-UNDANG PASAR MODAL

Technology-based fundraising or crowdfunding has become a popular trend in corporate funding thanks to the development of the internet. This research uses a normative juridical method by examining library materials to analyze legal protection in crowdfunding services based on the Investment Law and the Capital Market Law. The results showed that legal protection of crowdfunding activities has not been maximized. There is legal uncertainty regarding OJK regulations that are responsible for losses due to third party errors. There needs to be more detailed rules regarding liability in this case. In addition, the current legal structure in the crowdfunding activity platform is considered not clear enough in risk reduction and loss prevention for users. The lack of information due to the low level of knowledge of the Indonesian people about crowdfunding is also a challenge in efforts to protect actors and users from the risks of this activity. Nevertheless, crowdfunding activities have great potential in improving the Indonesian economy after the recession due to the Covid-19 pandemic

THE ROLE OF THE REGULATORY AND LEGAL FRAMEWORK IN PROMOTING EQUITY-BASED CROWDFUNDING IN IRAQ

The aim of research is to explain the role of the regulatory and legal framework in promoting ownership-based crowdfunding in Iraq and to develop a general framework that includes principles and basic steps to support policy makers, especially in a country like Iraq, in formulating and implementing regulatory and legal frameworks for the work of ownership-based crowdfunding platforms, taking into consideration Lessons learned from international experiences. The problematic of the research is represented in the following question: Is establishing a legal framework for crowdfunding, especially based on property rights, an urgent necessity, to start crowdfunding activity in Iraq in an organized and deliberate manner to take advantage of the advantages of this type of financing and overcome its negative effects? The research problem was addressed by relying on the analytical approach to find out the regulatory and legal framework and its role in promoting ownership-based crowdfunding in Iraq.

Compliance risks for crowdfunding. A neglected aspect of money laundering, terrorist financing and fraud

Purpose This study aims to highlight the risks and threats posed by crowdfunding. It also looks at the new European Union regulation on crowdfunding, which is intended to give participants confidence that there will be specific minimum regulatory standards to protect parties against mis-selling issues affecting some platforms. Design/methodology/approach This paper is based upon a thorough literature review. Findings Crowdfunding is an essential alternative for financing commercial and non-commercial projects. Although it is a fast-growing digital financial tool, it can also be considered extremely risky. It can be an ideal platform for money laundering and can facilitate the financing of terrorism and fraud. Originality/value Crowdfunding is still in its infancy, so the literature has not yet sufficiently addressed the compliance risks of crowdfunding. As a result, there is a significant research gap. Thus, this study aims to analyse and propose suggestions to mitigate the risks that all crowdfunding stakeholders may face when deciding to participate in a crowdfunding activity or when they want to set one up.

The Urgency of a Legal Protection on Equity Crowdfunding Services Based on the Regulation of the Indonesian Financial Service Authority No. 57/POJK.04/2020

A crowdfunding service that is carried out through information technology-based stocks or commonly known as equity crowdfunding is an innovation in the development of the digital economy. It is a supporting factor of Indonesia’s economic development as stipulated in the Regulation of the Financial Service Authority (RFSA) No. 37/POJK.04/2018. In 2020, this regulation was perfected into RFSA No. 57/POJK.04/2020 concerning the crowdfunding activity expansion, starting from the issuer to the stock. In RFSA No.57/POJK.04/2020 there was a transitional provision that became a problem for equity crowdfunding service program organizers in expanding their business according to RFSA No.57/POJK.04/2020. It concerns the grace period and the revocation of the permit by the Financial Service Authority if the organizers fail to reregistered during the determined grace period, though in expanding the business activity, there needs to be a profound analysis to prevent users from experiencing loss. This limited grace period certainly brings loss to the organizers, thus there needs to be a solution to keep the crowdfunding services running. Because of that, this research analyses the transitional provision in the RFSA No.57/POJK.04/2020 concerning equity crowdfunding in Indonesia. This paper uses the normative approach with a literature review analysis. The results are presented qualitatively. Research results show that there needs to be an additional grace period in the transitional provisions so organizers have enough time to undergo analyses in expanding their business activities. This is to prevent organizers or users from experiencing losses in the future.

Does crowdfunding really foster innovation? Evidence from the board game industry

Crowdfunding offers inventors and entrepreneurs alternative access to resources with which they can develop and realize their ideas. Besides helping to secure capital, crowdfunding also connects creators with engaged early supporters who provide public feedback. But does this process foster truly innovative outcomes? Does the proliferation of crowdfunding in an industry make it more innovative overall? Prior studies investigating the link between crowdfunding and innovation do not compare traditional and crowdfunded products and so while claims that crowdfunding supports innovation are theoretically sound, they lack empirical backing. We address this gap using a unique dataset of board games, an industry with significant crowdfunding activity in recent years. Each game is described by how it combines fundamental mechanisms such as dice-rolling, negotiation, and resource-management, from which we develop quantitative measures of innovation in game design. Using these measures to compare games, we find that crowdfunded games tend to be more distinctive from previous games than their traditionally published counterparts. They are also significantly more likely to implement novel combinations of mechanisms. Crowdfunded games are not just transient experiments: subsequent games imitate their novel ideas. These results hold in regression models controlling for game and designer-level confounders. Our findings demonstrate that the innovative potential of crowdfunding goes beyond individual products to entire industries, as new ideas spill over to traditionally funded products.

Crowdfunding as an Internet Tool Used for Establishing Relationships With the Customer – A Concept Paper

Purpose: As a conceptual paper, this article presents the idea of crowdfunding activities, crowdfunding being not only a modern tool of fundraising but also an interesting form of establishing relationships with stakeholders. The primary aim of the article is to show the role of crowdfunding in the process of creating relationships with customers. Design/methodology/approach: The article has been divided into two parts. The first part focuses on the definition of crowdfunding as a form of raising funds and provides examples of selected campaigns. The second part presents the process of establishing relationships during crowdfunding campaigns. The author applied a qualitative approach to meet the research objectives. Moreover, the concept formulation was done through a systematic literature review. Findings: The emotional involvement of consumers in a crowdfunding campaign constitutes a significant element in relation building and may be developed at any stage of the conducted campaign. Specific characteristics support building relations with consumers (openness, involvement, curiosity, willingness to share information, emotional connection, spontaneity, familiarity with other consumers). A major argument is the fact that during such campaigns relations are built on trust, openness and involvement. Research limitations/implications: The model was completely built based on the literature. Thus, as a further step of this research the author strongly suggests conducting research with a quantitative approach. Furthermore, the author stresses that the presented concept requires empirical verification and such research is planned in the future. Originality/value: This article analyzes crowdfunding activity in view of building relationships with customers. Thus, the author of the article shares the new knowledge and suggests the process of building relationships with customers by critically illustrating the created conceptual model.

Penerapan Blockchain dengan Integrasi Smart Contract pada Sistem Crowdfunding

The existing crowdfunding platforms still operate using centralized system. While centralized system can operate well, it requires a third party intermediary in order to operate and thus does not completely provide data security and transparency of crowdfunding activities. In addition, the existence of a third party intermediary in a crowdfunding activity also causes the existing processing costs to be expensive. Therefore, the crowdfunding system needs to be built in a decentralized manner so that it eliminates the need for third parties as intermediaries in the crowdfunding process. This study proposes a prototype of decentralized crowdfunding system using Ethereum blockchain and smart contract technology. The result of system functionality test using black box testing method shows that all functionality of the crowdfunding system can run properly while operate in decentralized architecture.

Early Crowdfunding Response to the COVID-19 Pandemic: Cross-sectional Study.

BackgroundAs the number of COVID-19 cases increased precipitously in the United States, policy makers and health officials marshalled their pandemic responses. As the economic impacts multiplied, anecdotal reports noted the increased use of web-based crowdfunding to defray these costs.ObjectiveWe examined the web-based crowdfunding response in the early stage of the COVID-19 pandemic in the United States to understand the incidence of initiation of COVID-19–related campaigns and compare them to non–COVID-19–related campaigns.MethodsOn May 16, 2020, we extracted all available data available on US campaigns that contained narratives and were created between January 1 and May 10, 2020, on GoFundMe. We identified the subset of COVID-19–related campaigns using keywords relevant to the COVID-19 pandemic. We explored the incidence of COVID-19–related campaigns by geography, by category, and over time, and we compared the characteristics of the campaigns to those of non–COVID-19–related campaigns after March 11, when the pandemic was declared. We then used a natural language processing algorithm to cluster campaigns by narrative content using overlapping keywords.ResultsWe found that there was a substantial increase in overall GoFundMe web-based crowdfunding campaigns in March, largely attributable to COVID-19–related campaigns. However, as the COVID-19 pandemic persisted and progressed, the number of campaigns per COVID-19 case declined more than tenfold across all states. The states with the earliest disease burden had the fewest campaigns per case, indicating a lack of a case-dependent response. COVID-19–related campaigns raised more money, had a longer narrative description, and were more likely to be shared on Facebook than other campaigns in the study period.ConclusionsWeb-based crowdfunding appears to be a stopgap for only a minority of campaigners. The novelty of an emergency likely impacts both campaign initiation and crowdfunding success, as it reflects the affective response of a community. Crowdfunding activity likely serves as an early signal for emerging needs and societal sentiment for communities in acute distress that could be used by governments and aid organizations to guide disaster relief and policy.

Awakening Revealed through Rose's Visual Analysis on #LangkahHijau Commercial Ads

Fundraising through digital technology, also known as crowdfunding is an easier, faster and more accurate alternative to donating for modern society. People who use mobile technology are able to always be connected to the internet to carry out various online activities from anywhere, including for fundraising activities. Apart from helping fellow human beings, donating activities can also be carried out as a form of program or activity to care for the environment and to improve the quality of air, land and water. One of them is a crowdfunding activity which is a form of concern from Grab Indonesia to improve air quality by inviting the public and users of Grab services to reduce their carbon footprint through the Carbon Offsetting campaign facilitated by WRI Indonesia and BenihBaik.com. One of the communication media used is the video advertisement “Kurangi Jejak Karbon #LangkahHijau Dengan Menanam Pohon - BenihBaik.com x Grab Indonesia x WRI” on YouTube social media. This article is compiled with a constructivist paradigm with the aim of carrying out a systematic analysis of the meaning contained in video advertisements through the Visual Analysis method by Gillian Rose supported by ten advertising analysis instruments and is based on Erwin Panofsky's Iconography theory. The results of this study indicate that there is a sense of awakening that people's daily lives have the power to destroy the Earth and the environment, but at the same time there are efforts to heal the Earth back into beauty. Key words: awakening, carbon footprint, crowdfunding, hashtag langkah hijau, visual analysis

Alternative Financing for Micro-Level Entrepreneur in Sub-Sahara Africa: A Crowd Funding Option

An inherent problem that entrepreneurs face at the early stage of their entrepreneurial initiative is to source capital. Given the difficulties in raising the needed funds to actualize their ideas through traditional fund lenders such as banks, this paper provided a background on crowd funding as an alternative financing source for micro-entrepreneurship in Sub-Sahara Africa. Literature was reviewed on micro-level enterprises and micro-entrepreneur, describing the concept of crowd funding and models. This paper adopted the equity-based crowd funding model for Sub-Sahara African micro-entrepreneurs because of its potential benefits over other models. It recommended amongst others that development workers, policymakers and aid organizations need to make considerable efforts to bridge the knowledge gap of micro-entrepreneurs in the subcontinent on crowd funding by creating in-depth awareness considering the 0.1% Africa involvement in global crowd funding activity.

Why do people patronize donation-based crowdfunding platforms? An activity perspective of critical success factors

As a special type of social information systems, crowdfunding platforms draw researchers’ attention in recent years for their increasing popularity. In supplement to big-data analyses on user-generated content, behavioral research using survey and interview observations provide insights on why people like or hesitate to use such platforms. Nevertheless, extant studies focus on user intention and equity/reward-based projects, leaving the knowledge body on why people actually engage in donation-based crowdfunding underdeveloped. Based on Activity Theory, this study explores the critical success factors of crowdfunding in terms of website acceptance, crowd familiarity, and donation reciprocity. It then develops a research model that adapts relevant constructs from e-commerce and charitable behavior literature to predict user trust and readiness leading to actual donation. To test the hypothesized relationships, a structural equation modeling analysis was conducted on 744 survey responses collected from crowdfunding platform users in multiple countries. Results provide supporting evidence to most hypotheses and reveal the influential factors of technological utilization and social collaboration in the crowdfunding activity.

Institutional characteristics and the development of crowdfunding across countries

The diffusion of crowdfunding among countries differs consistently, based, in part, on differences in national institutional environments. This study analyses the influence of formal and informal institutions in 27 different countries during the 2014–2017 period, on the development of crowdfunding. Our results show that the crowdfunding market – across all the different crowdfunding typologies- is larger in countries characterized by a business-friendly legal environment, and well-developed financial market in the case of lending crowdfunding. Individualistic societies register higher crowdfunding activity across the different typologies; lending crowdfunding is more widespread in countries characterized by higher uncertainty-avoidance and, together with equity crowdfunding, in long-term oriented societies.

Crowdfunding in a not-so-flat world

AbstractThis article analyzes the geographic clustering of crowdfunding (CF) activity across two countries at the city level. We find that the ability of Kickstarter projects to attract funding or backers is spikier than the simple number of projects, suggesting that while the locations of Kickstarter projects are not as clustered, projects that are able to recruit funding are clustering. In addition, we find that digital media (DM) projects cluster more than Local projects. Yet, once we control for the pre-existing geographic distribution of population and economic activity, we find more complex patterns of geographic clustering. The spatial clustering of total Kickstarter funds raised is largely explained by the population and economic activity controls. Conditional on those controls, funds raised for DM projects do spatially cluster, while funds raised for Local projects exhibit significant dispersion. Funding and number of backers cluster for DM projects, above and beyond the prior concentration of socioeconomic and employment factors. Conversely, our results suggest CF can reduce or flatten the spikiness of fundraising for local projects. The world was already spiky, and it is a bit less so thanks to CF platforms like Kickstarter.

Crowdfunding to Overcome Liability of Outsidership: Drivers of Immigrants' Fundraising Performance

This paper examines the drivers of immigrant entrepreneurs’ performance in crowdfunding activity. Drawing on the immigrant entrepreneur and crowdfunding literatures, and using data from 2,231 Kicks...

THE ROLE OF SOCIAL AWARENESS OVER THE SUCCESS OF CROWDFUNDING PLATFORM

Purpose of Study: Crowdfunding as alternative funding for creative businesses and SMEs is expected to be implemented in the business world due to low access to funding from banks and other financial institutions to both business groups. The purpose of this study is to determine the effect of regulation and legal aspect, technology readiness, social awareness, and entrepreneurial culture on the success of a crowdfunding platform.
 Methodology: This research uses a quantitative approach with survey method spread the questionnaire through google form to creative businessman and SMEs in Malaysia. 350 sets of questionnaires were sent to respondents, 300 accepted and 269 were analyzed.
 Results: The finding of this research is that the four variables influence the success of crowdfunding platform significantly, the most dominant influence is the social awareness variable.
 Implications/Applications: The implication of this research finding is that more active engagement is needed in order for individuals within a country to be actively involved in online social networks as this is a major driver of crowdfunding activity.

The role of supporter engagement in enhancing crowdfunding success

PurposeRecent research has addressed the marketing aspects incorporated in crowdfunding activity, establishing their relevance to campaign success. In line with this, research has begun to explore the behavioral aspects of crowdfunding participants, drawing on the buyer–seller interaction. The purpose of this paper is to expand on this trend by investigating the role of supporter engagement and its link to campaign success.Design/methodology/approachThe proposed model was tested using structural equation modeling analysis. Data collection was based on a survey of 116 supporters, combined with outcome data of 530 crowdfunding campaigns.FindingsThe study’s findings revealed that supporters distinguish between their engagement to the campaign and to the campaign’s creator. However, both aspects of engagement affect community establishment and supporters’ promotion efforts. The authors also found that these indicators of engagement are associated with campaign success.Originality/valueResearch on crowdfunding supporters have focused to date on criteria contributing to campaigns success, exploring the motivational aspects associated with such activity. The current study expands this perspective by examining supporters’ engagement, differentiating between engaging with the creator and engaging with the campaign. Recommendations for creators include making efforts to establish supporter engagement to facilitate active promotion and shape future support intentions, thus facilitating enhanced outcomes for both current and future campaigns.

СТАН І ПЕРСПЕКТИВИ РОЗВИТКУ КРАУДФАНДИНГОВОЇ ДІЯЛЬНОСТІ

У статті досліджується поняття “краудфандинг” та його особливості. Коротко розглянуто альтернативні краудфандингу джерела залучення фінансових ресурсів для стартапів та проектів інноваційного розвитку, а саме: краудінвестинг та краудлендинг, фінансування завдяки “бізнес–ангелам”, венчурні фонди тощо (бізнес–інкубатори, платформи для стартапів). Проаналізовано обсяги та ефективність краудфандингових операцій у США, Нідерландах, Німеччині та Франції. Крім того, було досліджено сучасний стан та особливості краудфандингу в Україні. У підсумку статті зроблено висновки про необхідність створення державою сприятливого законодавчого поля та популяризації краудфандингу серед населення з метою зміцнення довіри до цього фінансового інструмента.

Crowdfunding and Venture Capital: Substitutes or Complements?

The authors study the geographical and time series dynamics of crowdfunding and the degree to which it substitutes or it enhances venture capital (VC). Their findings support the argument that crowdfunding is a substitute of traditional VC for seed capital but it complements VC activity for subsequent rounds of financing. Consistently, they also find that crowdfunding activity clusters in the same main centers as venture capital financing.