Crowdfunding Model Research Articles

Critical mass in a crowd: A predictive model of online crowdfunding of public goods in the U.S. vs. U.K

Research on differences in public goods crowdfunding donation behavior among top-performing markets is scarce, particularly among countries that are often considered culturally similar overall but have differences that may affect crowdfunding donation behavior (e.g., the U.S. and U.K.). With addressing this gap in mind, we calculate the “critical mass” numbers for both markets using scraped data from major crowdfunding sites and advanced econometrics and analytics techniques. While fewer contributors are required for a U.S. crowdfunding campaign to “take off,” U.S. contributions decrease afterward. Meanwhile, U.K. participants follow the opposite pattern, contributing at a slower yet steadier pace over time, with more successful campaigns long term. Further, lower (higher) information efficiency leads to lower critical mass numbers, lower duration, and more donors for the U.S. (U.K.). The findings contribute to the literature on global crowdfunding by characterizing idiosyncrasies of the top two crowdfunding markets in donation behavior toward public goods campaigns.

Business Model of Indonesian Fintech Crowdfunding

Fintech crowdfunding has emerged as one of the most widely used for entrepreneurs which starts their businesses. However, fintech crowdfunding isn't growing in the same way as other fintech, thus the business model and strength are yet unidentified. This study's purpose is to identify and analyze the fintech crowdfunding business model alongside its strengths. This study method takes a qualitative approach. The data was processed using NVIVO 14. This study focuses on fintech crowdfunding licensed by the Financial Services Authority. The study results show that the fintech crowdfunding business model concept is network-centric and emphasizes the value exchange between all of the model elements. The value proposition and key activity are the aspects that make fintech equity crowdfunding effective.

The Implications of Crowdfunding on News Production and Distribution Practices in Indonesia's Online Media

This article investigates the crowdfunding journalism model and its implications for the news production and distribution of Project Multatuli (PM), the first crowdfunding media in Indonesia. Therefore, this research utilizes a crowdfunding journalism perspective, a qualitative approach study, and triangulation methods for data collection (in-depth interviews, participant observation, and documentation). The results showed the following findings: First, PM uses a combination funding model of crowdfunding and donor agencies, rather than hybrid funding based on a traditional business model that relies on media owners and advertising. This combination funding model aims to be free from pressure from media owners as investors and profit orientation from advertising revenue. Second, PM creates a transparent, participatory and collaborative co-creation process with its members in content production. Third, PM 'resists' the logic of algorithms through clickbait to increase digital traffic which has implications for the speed and superficiality of coverage. It is a form of PM's dedication to investigative journalism that is committed to in-depth coverage in order to maintain the credibility of the content. Lastly, PM distributes content through national, local and international media networks under creative license. Thus, the distribution strategy is more aimed at expanding the reach of literacy to the general public, rather than just increasing readership.

Strategi Sosialisasi Model Crowdfunding Sebagai Alternatif Penghimpunan Dana Zakat Infak Sedekah Pada Dompet Dhuafa Sulawesi Selatan

Crowdfunding model emerged as an alternative to collect ZIS funds in the digitalization era with technological developments and changes in donor behavior. This research aimed to explore the strategy of socializing the Crowdfunding model as an alternative for collecting ZIS funds in Dompet Dhuafa, South Sulawesi. This research used qualitative methods with a phenomenological approach to explore how individuals interpret the socialization strategy of the Crowdfunding model by Dompet Dhuafa South Sulawesi. Data collection methods included in-depth and structured interviews, observation, and documentation. The research results showed that Dompet Dhuafa South Sulawesi used three main methods in socializing the Crowdfunding model: placing advertisements and videos on Kitabisa.com platform, using social media such as Instagram and Facebook, and placing banners in strategic places. However, the research suggested the need to add other methods of outreach such as outreach in the community and seminars on universities, to expand the reach and effectiveness of Crowdfunding campaigns. It is hoped that the results of this research provided a practical contribution to Dompet Dhuafa South Sulawesi in optimizing the collection of ZIS funds through online platforms and provided academic insight into the study of Islamic economics, especially on ZIS management.

Donors’ intentions to use crowdfunding-based waqf model in Kuwait: application of unified theory on acceptance and use of technology (UTAUT) model

PurposeThis study aims to examine the factors that affect individuals’ intentions of participating in waqf-based crowdfunding model in Kuwait.Design/methodology/approachThis study adopted the unified theory of acceptance and use of technology (UTAUT) model. The data were collected by online questionnaire survey based on 419 donors in waqf institutions in Kuwait. The data were analysed using the partial least squares structural equation modelling technique.FindingsThe results illustrate that performance expectancy, effort expectancy, social influence and facilitating condition positively affect behavioural intention towards waqf-based crowdfunding projects.Practical implicationsThe paper presents an alternative source for waqf institutions to raise capital to develop waqf assets in majority and minority Muslim countries. The findings of this study hold significant implications for government officials and policymakers.Originality/valueTo the best of the authors’ knowledge, this paper is the first to explore waqf crowdfunding in Kuwait using the UTAUT model. There needs to be more research on waqf-giving behaviour in Kuwait, particularly concerning crowdfunding, which has become more popular recently. Thus, this paper aims to address this gap and contribute new insights to the field.

An Islamic Crowdfunding Model for the Agricultural Sector: A Proposal Based on Salam and Muzāraʿah-Waqf Scheme

Purpose — This study aims to discuss several examples of temporary Islamic endowments (waqfs) in the modern period, arguing that jurists and Muslim endowment managers should utilise them more widely to adjust to current societal circumstances and open the door for new ways of caring for those in need. Design/Methodology/Approach — It employed textual analysis of legal opinions related to temporary waqfs, outlining the positions of scholars on both sides of the issue, including a presentation and analysis of their evidence. Findings — The research findings show that temporary waqfs are an essential means of renewable and sustainable economic support, where wealthy people endow their money for religious gain and to help others in need. Originality/Value — Unlike some previous studies, this article specifically examines modern and contemporary forms of temporary endowments and demonstrates some of their effects in supporting the economy and the needy in society. Practical Implications — Following this paper’s recommendations, those with funds and everyone who can create an endowment should support endowment institutions in modern ways and in different areas of temporary endowments, which would be very beneficial in eliminating poverty and supporting the economy. Research Limitations/Implications — Due to the limited scope of the study, its findings are limited to contemporary jurisprudential issues related to temporary endowments. Hence, it is related to the Islamic economy and steps for strengthening it in Muslim societies.

Easy-Starter : An Online Crowdfunding Website Using Blockchain

Crowd funding is a method of internet fundraising that started out as a way for the general public to contribute small sums of money to support the initiatives of creative individuals. Crowdfunding allows individuals to invest in start-up businesses by going via a middleman, like a broker-dealer. The present websites have an issue in that they don't offer the Donor Guarantee Policy and they don't have authority over the funds that donors donate. In this paper, we propose to use blockchain technology for crowdfunding. By doing this, we are able to offer a transparent, safe, and safe crowdfunding process. This article aims to facilitate the creation and funding of campaigns by offering interactive forms for campaign designers and funders to easily construct and approve initiatives. The money that was donated to them can be tracked by the donor. Every transaction will be captured by the blockchain and stored as a block. There are costs involved, a chance of failure, and crowd fundraising is not a charity. This is where blockchain technology comes in to offset the possible dangers associated with the traditional fundraising approach. By using a decentralized approach to crowd funding, we can completely eliminate any dangers associated with the traditional crowdfunding model.

DEVELOPMENT OF ECONOMIC SUPPORTING INFRASTRUCTURE IN THE NATION'S CAPITAL: A PROPOSAL USING A CROWDFUNDING SCHEME

Objective: This research aims to provide proposals for a comprehensive policy framework and strategic plan to advance economic prosperity through infrastructure development in the New Capital Region of East Kalimantan, Indonesia. Theoretical Framework: The theory used is crowdfunding from Kirby & Worner (2014). The crowdfunding model includes social crowdfunding communities, loans/donations, and reward crowdfunding. The financial benefits of crowdfunding encompass peer-to-peer (P2P) loans and equity crowdfunding. Method: The method employed is a qualitative approach using interview discussions supported by participant observation. Twenty-two stakeholders, including policymakers and community members, participated in the study, providing diverse perspectives. The research takes place from September 16 to November 19, 2023, with the research locus in the city of IKN Nusantara. Results and Conclusions: To comprehend the short-medium-and long-term perspectives, these plans require innovative financing methodologies, such as crowdfunding, which is considered an essential element. In the short term, community involvement is targeted through SBSN, facilitating direct community participation in infrastructure funding. This medium-term strategy integrates digital platforms and blockchain technology, increasing transparency and strengthening public trust. A mixed creative financing model is recommended for public transport, aligning crowdfunding with Public-Private Partnerships. In the long term, this study highlights the growing maturity of crowdfunding and its potential positive influence on the infrastructure supporting the economy, setting a precedent that can be imitated in other regions in Indonesia. Research Implications: In line with national aspirations to achieve advanced status by 2045, this proposal supports inclusive economic growth inspired by China's expertise in optimizing domestic resources. The importance of the Open Government concept was underlined, emphasizing community involvement to reduce foreign dependence and encourage sustainable economic growth. Originality/Value: This research includes concrete actions, such as implementing Government Sharia Securities, blockchain integration, and targeted financial education campaigns, all aimed at ensuring the effectiveness and long-term success of infrastructure development in the Capital Region.

Crowdfunding as a Strategy for the Convergence of Digital and Traditional Forms of Marketing

The purpose. To reveal the potential of using crowdfunding for marketing purposes. The paper considers the concept of crowdfunding, the history of its emergence, the formation of its modern model as a result of digitalization, describes the modern model of crowdfunding and identifies the benefits that startups get from using it as a marketing strategy. Result. It was revealed that the use of crowdfunding as a marketing strategy provides startups with a number of advantages due to the synergistic effect that achieved due to the convergence within crowdfunding of digital and traditional forms of marketing.

Crowdfunding as a Social Phenomenon: A Bibliometric Exploration of Research Trends and Societal Implications

From a marginal to a relevant social phenomenon, crowdfunding has changed traditional funding patterns and caused far-reaching consequences in most areas of society. Actually, very little is known about the multi-faceted implications brought about by crowdfunding. Grounded on existing research, this paper contributes to an understanding of the overall societal impact created by crowdfunding through a bibliometric analysis. This methodology applies co-citation analysis, citation analysis, and keyword co-occurrence analysis to 561 journal publications retrieved from Scopus until August 2024. The results show that there are five major research clusters: Financial Technology and Consumer Behaviour, Entrepreneurial Finance and Innovation, Economic Impact and Business Models, Islamic Finance and Crowdfunding, and Social Impact and Public Goods. The paper contextualises crowdfunding within the framework of democratising access to capital, innovation, and social causes. It also underlines the integration of Islamic finance principles into crowdfunding models. The research set’s theoretical implications serve as the foundation for revised frameworks on entrepreneurship, venture capital, and social impact assessment, which incorporate the influence of crowdfunding. Platform operators, project creators, and investors need to adapt their strategies to evolving consumer behaviours, comprehend backer motivations, and take into account the wider societal impact of the projects they fund. The present research enables future studies of crowdfunding in terms of long-term impact and is a valuable insight for scholars, practitioners, and policymakers to steer their way forward in this fast-changing field.

Investigation of the Dimensions and Components of the Crowdfunding Model in the Digital Context for Social Entrepreneurship

Objective: This study investigates the dimensions and components of the crowdfunding model in the digital context for social entrepreneurship. Methodology: Initially, the dimensions and components of the social entrepreneurship crowdfunding model were identified using previous studies. Following this, based on the identified components and indicators, a questionnaire was designed by the researchers, and the validity and reliability of the designed questionnaire were evaluated and confirmed using statistical techniques. The questionnaire was then distributed among 384 social entrepreneurs. The collected data were analyzed using statistical techniques and structural equation modeling. Findings: The research findings indicated that the proposed hypotheses, including the impact of capital security, digital context, and crowdfunding on the extent of advertising, were confirmed. Conclusion: Therefore, government support for crowdfunding and investor characteristics in the conditions of assurance considered by the researchers lead to improvements in crowdfunding.

Uncovering Backers’ Intention to Participate in Reward-Based Crowdfunding: The Role of Value Cocreation

The ongoing dynamic market evolution has reshaped the way companies can create value, thanks to new funding models and new market opportunities, especially in the early business stages. In particular, with the growing development of crowdfunding models, scholars and practitioners are questioning how backers can cocreate value by funding new entrepreneurial initiatives through digital platforms dedicated to this new form of financial support. Therefore, positioning this article in the knowledge and engineering management literature, the current research explores whether two subdimensions of value cocreation (VCC), knowledge sharing and interaction, may help to understand backers’ intention to participate in a reward-based crowdfunding (RBCF) campaign. In particular, using the partial least square structural equation modeling approach on an original sample of 3574 backers, in this article, we find that knowledge sharing, understood as backers’ expertise as well as the preparedness of the proponent team, and the interaction between the campaign actors contribute to explaining backers’ participation in an RBCF initiative. The research supports the relevance of backers’ engagement in terms of VCC as an experiential benefit for the success of an RBCF initiative. From this perspective, our study suggests that both entrepreneurs and platforms should consider VCC in the design and setting of RBCF campaigns.

СУЧАСНІ ТЕХНОЛОГІЇ ЗАЛУЧЕННЯ ФІНАНСУВАННЯ СОЦІАЛЬНИХ ІНІЦІАТИВ

The article discusses the development and establishment of crowdfunding as a modern technology for raising funds for the implementation of social projects and initiatives. The term "Crowdfunding" should be understood as a model of collective financing or collective cooperation of a large number of people who voluntarily pool their financial and other resources, mainly via the Internet, to support projects, organizations, other people, etc. The results of the study confirmed the conclusion that funding for social initiatives is decreasing not only in Ukraine but also abroad; the main reasons for this decrease are changing priorities in activities, financial problems of donors, etc. In the context of war, the main advantages of the crowdfunding model of fundraising, compared to traditional ones, include the following: the ability to accumulate a significant amount of resources from a large number of investors, the ability to determine the areas of expenditure more broadly, the speed of receiving funds, greater transparency of information about investment objects, accountability and responsibility of companies to the community of investors or donors, the presence of social impact, and the possibility of wider use of digital tools. Therefore, one of the current challenges is the formation and development of networks of crowdfunding platforms in Ukraine, based on the principles inherent in international platforms. The study reveals the dependence of the development of civic engagement and crowdfunding, in particular, it shows that the public manifests social initiatives through charitable and volunteer actions (targeted actions), as well as through the development of industry clusters (social enterprises), advocacy coalitions, etc. It is noted that financing through crowdfunding platforms allows accumulating not only financial assets, but also human capital in the form of a combination of skills and knowledge, developing the cultural capital of the local community; promotes social cohesion. It is emphasized that the implementation of social initiatives is more effective if the level of public trust in these projects and their actors increases.

The Behavioral Intention of Citizens to Finance Smart City Development in Indonesia through Civic Crowdfunding

In order to foster the creation of sustainable and habitable urban areas that cater to the needs of all residents, it is imperative to construct new infrastructure and concurrently ensure the upkeep and modernization of existing ones. This is where the concept of smart cities becomes instrumental, exerting a profound impact on the broader urban landscape. However, a significant challenge lies in securing the financial resources required for the development of smart cities, particularly in the midst of the current economic downturn. As a solution to this challenge, the present study proposes the implementation of an Integrated Civic Crowdfunding Model (ICCM) to finance the development of smart cities in East Java, Indonesia. Based on this proposed model, the study delves into the willingness of citizens to adopt ICCM. To achieve this, an analysis is performed utilizing Partial Least Squares on primary data collected through a survey administered to residents of East Java, specifically in Surabaya (SmartPLS). Additionally, the study assesses the model's adoption in practice by incorporating an extended Technology Acceptance Model (TAM). The study's results reveal that factors such as the perceived usefulness, perceived ease of use, and perceived benefits positively influence residents' intentions to use ICCM, thereby contributing to the advancement of smart cities in Indonesia. Furthermore, there is a favorable correlation and direct impact of perceived ease of use on the perceived utility of ICCM among citizens. These findings can serve as a foundation for the development of a specialized framework for examining other aspects of the ICCM model and devising relevant intervention strategies for the enhancement of smart cities in East Java. Originality/Value: The originality of this study lies in its introduction and application of the Integrated Civic Crowdfunding Model (ICCM) to finance the development of smart cities in East Java, Indonesia.

Crowdfunding With Cognitive Limitations

To achieve the desirable funding target in a crowdfunding campaign, the project creator needs to accurately anticipate the pledging behaviors of contributors with practical cognitive limitations. In this paper, we present a study on how the contributors’ cognitive bounded rationality affects the creator’s campaign decisions. Specifically, we consider a two-stage crowdfunding model, where a creator first announces the project decisions (i.e., price and the minimum number of required contributors), and then the contributors choose their pledging behaviors (whether and how to contribute) as they arrive stochastically. We consider the cognitive hierarchy model, where contributors are classified into different levels according to their capability of anticipating other contributors’ behaviors. Surprisingly, we show that the cognitive limitation may improve the chance of project success, especially when the crowdfunding target is high. We prove that with a high average contributor cognitive level, a low funding target, and a low difficulty of motivating the lowest cognitive level contributors, the creator can achieve a close-to-optimal revenue by simply assuming that contributors are fully rational. Otherwise, ignoring the contributors’ cognitive limitations can lead to a significant revenue loss.

Sharia Crowdfunding As An Alternative Financing Solution The Capital City Of The Archipelago

The government plans to move the national capital from the Jakarta Special Capital Region to East Kalimantan, now known as the Nusantara Capital Region (IKN), in phases from the enactment of Law No. 3 in 2022. also plans to inaugurate the IKN on August 17, 2024 to coincide with the 79th anniversary of the Republic of Indonesia. However, this plan has problems in implementation as it requires a large budget of IDR 466 trillion with 20% funded by the state budget and 80% funded by the private sector. individuals, but so far no investor has made their investment in IKN. . This is due to a number of obstacles considered by large investors, such as high logistics costs and regulatory inconsistency. The purpose of this article is to analyze the difficulties encountered in funding the IKN project. Analytical techniques using descriptive qualitative methods with library research methods. The proposed results suggest an alternative source of financing using the Islamic crowdfunding model to attract investors.

Sustainable funding for small businesses: An investigation into the dynamics of the recurring crowdfunding model

In an era of one-off funding, entrepreneurs and small businesses struggle to find sustainable funding sources. A novel solution – the crowd patronage model, has emerged in recent years. This model incorporates elements from traditional crowdfunding but is systematically different due to the lack of a fixed funding goal or duration. To capitalise on the long-term nature of crowd patronage, this article explores whether factors that have an impact in traditional crowdfunding will have a similar impact within an extended duration beyond what traditional crowdfunding typically offers. We posit that incentivising mechanisms will have a long-term impact on crowd patronage, whereas project characteristic measures will exhibit short-term effects. Using data from 3229 crowd patronage projects, we find that our results largely support our hypotheses. Given our findings, we propose using project characteristics to attract contributors before shifting focus to incentivising mechanisms as the project matures in order to maximise crowdfunding returns.

Crowdfunding model as a source of financing for entrepreneurship and innovation projects in higher-education entities

Introduction: This article is the product of research on reducing the number of intermediaries by making use of Crowdfunding as an alternative source of low-cost financing, developed at the Universidad Distrital Francisco José de Caldas, in 2023. Problem: Although the term Crowdfunding is not new in the financial field, it is not very well known by the community, which means that it has not been applied as a recurrent financing alternative for projects or businesses in Colombia. Objective: This article presents a collaborative financing model for higher education institutions in Colombia, mainly for research groups oriented to the generation of new knowledge or spin-offs, with the aim of providing alternatives to classical financing models. Methodology: A literature review was conducted using the PRISMA methodology to identify, evaluate, and synthesize the existing body of knowledge produced by researchers, academics, or professionals. Results: The scope of this literature review encompasses the different types of crowdfunding, including its evolution over time and its inclusion in various economic areas. Additionally, it helps to visualize the level of knowledge about this concept among different university groups. Conclusion: The literature review examines the state of crowdfunding in Latin America, highlighting the lack of research compared to other regions. The impact of crowdfunding in various sectors, including technology,finance, and legislation, is emphasized. Furthermore, the need for theoretical reflection on how crowdfunding affects projects in the Southern Cone region is noted. The objective is to increase understanding and knowledge of crowdfunding among Latin American entrepreneurs and young people.

The applicability of Islamic crowdfunding as an alternative funding for micro-entrepreneurs in Malaysia

PurposeThe purpose of this study is to analyse potential models of Islamic crowdfunding as an alternative financing option for micro-entrepreneurs in Malaysia. While crowdfunding has gained traction as an alternative funding source for businesses, it is unclear how far this concept can benefit a group of micro-entrepreneurs in Malaysia.Design/methodology/approachThis study uses a qualitative research approach by using data collected through semi-structured interviews with several experts and practitioners in crowdfunding, Shariah and entrepreneurship. Prior to discussing the facets of the findings, the data were analysed based on a thematic approach.FindingsThe findings reveal that while previous works of related literature suggest crowdfunding as a viable alternative financing option for entrepreneurs and their businesses, in reality, its practical implementation presents challenges. Numerous micro-entrepreneurs need more training in the areas of management and marketing. Such concerns raise questions about their ability to attract potential project backers. With the proper selection of Shariah contracts and several approaches to risk management, Islamic crowdfunding can potentially become an alternative funding source for microbusinesses.Research limitations/implicationsGiven the exploratory nature of this study regarding the applicability of Islamic crowdfunding as an alternative fund for micro-entrepreneurs, its findings may not fully encompass Malaysia’s context because of the limited number of participants involved.Practical implicationsThe findings of this study offer guidelines on how to implement Islamic crowdfunding for micro-entrepreneurs. Consequently, Islamic crowdfunding has the potential to alleviate the government’s burden of providing funds for micro-enterprises and enhance their skills and mentality to be more independent, creative and able to promote their products.Social implicationsWhile Islamic crowdfunding can be an alternative opportunity for business enterprises and community-based projects, it promotes the spirit of cooperation and collaboration within society.Originality/valueAlthough Islamic crowdfunding is a topic that has been discussed previously, empirical investigations in this area remain scarce, mainly through qualitative approaches. Distinguishing from prior literature, this study analyses several potential models of Islamic crowdfunding from the perspectives of experts, practitioners and related agencies for micro-entrepreneurs. Moreover, this study bridges insights from related literature so that they offer practical applications to support micro-entrepreneurs in Malaysia.

An integrated cash waqf and Islamic crowdfunding model (I-CWCM) for SMEs: Policy implications for the post-Covid-19 pandemic

Purpose – This paper aims to discuss the proposed model, called Integrated Cash Waqf and Islamic Crowdfunding Model (I-CWCM), for small and medium enterprises (SMEs), including micro-enterprises and household businesses in the digital era.Methodology – The author documents some cash waqf models and Islamic crowdfunding models that have been developed by previous researchers. And then modified and introduces the I-CWCM model based on the relevant literature study.Findings – In this model, the cash waqf funds (temporary and perpetual) will be invested in Islamic investments and productive asset programs. The investment return gained from cash waqf investments will be utilized for providing financial services by using PLS financing schemes and non-PLS financing schemes for SMEs.Implications – The article is conceptual in nature, and the developed model has not been tested either through interviews or empirical testing. For further research, it is necessary to validate the model either through interviews or by developing hypotheses. Furthermore, the I-CWCM will be possible to set up Islamic social finance institutions, Islamic financial institutions, and Islamic microfinance institutions in a country with a majority Muslim population like Indonesia, especially in times of crisis such as Covid-19 outbreaks.Originality – The originality of this study is the I-CWCM will include two important unit funds: (1) the reserve fund is for sustaining the cash waqf founder, and (2) the backup risk fund is for addressing any risk in business and non-business financing activities.