Types Of Crowdfunding Research Articles

Analysis of Investment Intention Factors by Multiple Subjects to Crowdfunding Types

Purpose - The type of crowdfunding varies depending on the rewards provided to investors. Even though there may be differences in investment attraction strategies depending on type, crowdfunding is often viewed singularly, or only analyzed by factor of investment intention for one type. This paper analyzed whether the factors affecting investment intentions leading to project performance differ depending on the type of crowdfunding, compensation standards, and equity standards.
 Design/Methodology/Approach - This study conducted an online survey of 343 respondents in Korea from May 6th to 13th, 2023, to investigate how the main factors of the UTAUT model, trust, and authenticity perception affect each investment intention depending on the type of crowdfunding platform. After coding the collected data, factor analysis, goodness of fit, convergence and discrimination validity, and regression analysis were conducted with SPSS 26 and Stata 17.
 Findings - According to the results, social influence, performance expectancy, and authenticity perception were factors influencing intention to invest in reward-based crowdfunding. Factors affecting intention to use equity-based crowdfunding were social influence and performance expectancy.
 Research Implications - Through this study, it is expected that a more appropriate strategy can be established in consideration of factors that affect different investment willingness depending on the type to increase crowdfunding performance, and it is anticipated that potential investor intention to participate in crowdfunding projects will increase.

Crowdfunding platforms in Russia: Methodological tools for agents’ investment decision-making

Modern conditions brought forth digital investment platforms, which have offered new possibilities of raising capital by entrepreneurs. The paper aims to rank these platforms to meet the information and analytical needs of agents in investment decision-making. Methodologically, the paper relies on the ecosystem approach, as well as propositions of digital, collaborative and platform economics. The paper applies the methods of grade rating, coefficient and correlation analysis. The evidence comes from public reports on investment activities of 68 crowdfunding platform operators and other information available on their websites. To rank the platforms, the study considers the factors related to investment activity (competitiveness, market activity, scaling up, etc.) and risks (financial insolvency, credit and litigation risks, etc.) and then designs a method for a rating-based assessment of investment activity and risks. The paper provides a multivariate assessment of investment activity and risks including systemic ones and specific for certain types of crowdfunding. The study presents the ranking of 68 crowdfunding platforms, identifies types of platforms according to the criteria “investment activity – risks”, as well as the criteria of security of investment (Co-Fi, Peers.money, Potok.Digital, InveStore, InvestGO) and association with a high risk. The method can be useful for investors and borrowers to justify their financial decisions; for the Bank of Russia to perform control and supervision procedures; and for professional community to outline directions for the development and promotion of the crowdfunding in Russia.

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.

Благотворительная сущность краудфандинга

At the present stage of development of society, characterized by the adjustment of socially significant foundations of the state, the creation of new institutions of economic support for certain categories of citizens in order to realize their constitutional rights, a special demand of society for various types and forms of charitable activities is being formed. This paper analyzes the key aspects related to the nature of crowdfunding: the process of its development, domestic practice of its application, types of crowdfunding. The study also includes a description of the emerging trend in Russian charity in terms of modernizing society and ensuring its stability, which is expressed in a change in the functionality of the institutional agent of charitable activity and, as a consequence, a change in the value orientations of charity subjects. The purpose of the study is to determine the charitable nature of the crowdfunding institute by their local consideration. Attention is drawn to the problems that arise when separating crowdfunding and charity from other forms of investment and donations.

An Examination of Unaddressed Research Gaps in Reward-Based Crowdfunding Performance and Success

Entrepreneurs’ options for raising capital in the 21st Century have changed dramatically. Of the new options for individuals and businesses to raise funds, none has received more attention in the last decade than Crowdfunding. Crowdfunding, having emerged from crowdsourcing, allows fundraisers to collect funds from funders, usually via the internet, and most often through an intermediary, the crowdfunding platform. The most studied type of crowdfunding is reward-based crowdfunding in which funders receive a reward from the funder for pledging funds to a campaign. What factors impact the performance of reward-based crowdfunding campaigns is of vital importance. Similarly, knowledge of the recent advances in the field including the remaining research gaps, which have so far been underexplored, is also pressing. The purpose of this systematic review was therefore to answer two interrelated, questions: first, what performance and success factors have been recently discovered in the RBCF literature (2018-2021)? Second, what are the remaining unaddressed research gaps in reward-based crowdfunding performance and success? This review produced several key findings. In addition to the many gaps already identified in previous crowdfunding reviews, this review identified several novel gaps. First, the extant literature has not addressed the importance of macroeconomic factors in determining the performance of campaigns. Second, there is a paucity of research concerning the impact of the COVID-19 Pandemic on campaign performance, or how funder motivations and behaviors have been affected. Third, there has been a lack of research on fundraisers whose campaigns are “self-hosted” on their own websites bypassing crowdfunding platforms altogether. Lastly, this review did not identify any studies that attempted to understand the effects of funders canceling or decreasing previously made pledges to a campaign, or what motivates funders to change their pledges mid-campaign.

Crowd-technologies in the governance system under conditions of military law in Ukraine

The article is devoted to the peculiarities of using crowd technologies in public institutions under conditions of military law in Ukraine. An analysis is made of the definition of crowd technologies in domestic and foreign literature. Criteria and indicators of crowd technologies are determined, including: a common goal as a factor of participants’ identity; absence of legal contracts and agreements; operational horizontal communication; a small amount of resources spent; non-financial incentives and motivation for attracting new participants; generation of decisions and ideas, obtaining new knowledge; effective implementation on the Internet; unlimited number of participants. The systematic structure of crowd technological projects and the advantages of crowd technologies in public administration compared to traditional administrative levers are systematized. An overview of crowd technology typologies at the level of governance institutions is provided, including their time of implementation, initiator status, and more. The reasons for the rapid development of crowd technologies in the conditions of a state of war have been identified, including: a high level of civic activity and responsibility of the population due to the efforts to counter Russian aggression; a high degree of development of civil society, especially the volunteer sector in the period preceding the full-scale Russian invasion; a culture of openness cultivated by the authorities following the Revolution of Dignity in 2014; a high level of trust in the military organization of the state and the overall legitimacy of the government, which became the center of unity for society; the presence of an information and network society actively introduced in Ukraine as a result of active policies of decentralization and digitization in previous years; a high level of development of the Internet and information and communication technologies, including as a result of the COVID-19 pandemic. The peculiarities and examples of the application of crowd technologies in conditions of martial law in Ukraine have been investigated. Various types of crowdfunding, based on voluntary contributions, including crowdsourcing, crowddonating, crowdlending, and crowdinvesting, are classified as financial crowd technologies. Crowdstaffing, crowdrecruiting, crowdtraining, crowdhunting, and crowdassessment are classified as personnel crowd technologies responsible for personnel recruitment. The focus is on crowd technologies that optimize the activities of public authorities and organizations and implement innovations. The following are studied: crowdmarketing, crowdcomputing, crowdstorming, crowdforesight, crowdtesting, crowdcrowdcreation, crowdwiki, crowdactive, crowdfixing, crowdsearching, crowdmapping, crowdsolving, and crowdvoting. Conditions and recommendations for using the opportunities of crowd technologies in the governance system, including in conditions of martial law, are identified, including decentralization of governance, e-governance, and informatization. The conditions and recommendations for utilizing the potential of crowd technologies in the governance system have been identified, including in the context of martial law.

International Experience Strategic Analysis of Financing Small Innovative Enterprises

The article analyzes the international experience of financing small innovative enterprises. The internal environment analysis of the small innovative enterprises financing infrastructure was carried out in China, Israel, European countries and the USA. The study touched upon a number of instruments that finance innovative enterprises, such as state financial support, the venture industry, the alternative investment market (various types of crowdfunding). Based on the conducted strategic analysis, the strengths and weaknesses of the small innovative enterprises financing infrastructure in the analyzed countries were identified. The conducted study of international experience will allow in the future to more comprehensively approach the strategic priorities development of the small innovative enterprises financing infrastructure in Russia at the national and regional levels.

Assessment of the potential of crowdfunding platforms as digital technology for financing innovative business projects in Russia

The article discusses the essence and types of crowdfunding, the views of various scientists on the interpretation of the term "crowdfunding", on the synthesis of which the authors proposed their own definition of the term, also gives a general description of the crowdfunding market in Russia, which allowed the authors to form criteria for conducting a comparative analysis of the functioning of the largest national crowdfunding platforms Planeta.ru and Boomstarter. These criteria are the basis for creating the author's methodology for assessing the potential of crowd platforms, since these signs will reveal the strengths and weaknesses of the platform. The development of a new approach to assess the potential of a crowdfunding platform creates the necessary conditions for the subsequent development of the crowdfunding industry in the national economy, improves the economic effect of using certain types of crowdfunding, and also improves economic relations between entities in general, attracting new users.

Crowdfunding and modern financial technology in the western and domestic practices: the current state and prospects for development

The article in hand presents the authors’ position regarding the current state and prospects for development of crowdfunding and modern financial technology (FinTech) in the US and European practices, as well as in those of the Russian Federation at the end of the 2021 financial year. The authors study the basics of crowdfunding as financial innovations in lending and investment and distinguished seven basic types of crowdfunding. They also present the results of the complex analysis of the FinTech function mechanisms in the sphere under consideration. The article contains the performance results of five largest American crowdfunding web-sites (AngelList, Kickstarter, Fundable, EquityNet и WeFunder) and the most successful European investment platforms (Ulule, Startnext и CrowdFunder). The authors examine specific features of applying FinTech in lending and investment of the Russian Federation. The carry out the historical and territorial analysis using the registration data of all investment platforms in the official “Register of investment platform operators of the Central Bank of the Russian Federation”. Using the analysis of factual financial data at the end of 2021 from 59 companies registered as investment platforms in the above mentioned register the authors conducted financial analysis of their performance. They found out that only 50% of the companies under study were able to attract investment for financing at least one investment project. It has been stated that only 16 companies in the Russian Federation can be more attractive for private investors compared to other crowdfunding platforms, as at the end of 2021 they did not have any unfulfilled investment obligations. The article shows that development of the Russian crowdfunding law is going on systematically, because the ideas of collective financing of different small and medium business projects are actively supported at the government level.

The relationship between brand constructs and motivational patterns in crowdfunding decisions. Evidence from university crowdfunding

PurposeThis study aims to expand the existing body of knowledge on crowdfunding (CF) motivational patterns with special reference to intangible factors, which most scholars assume to be the most important ones, especially in non-investment-based CF. The purpose is to understand how the presence of an established brand in a CF campaign can affect backers’ funding choices and the reasons behind them. To this end, the authors combine principles from identification, brand relationship and self-determination theories.Design/methodology/approachThe authors considered the (altruistic in nature) domain of CF for social causes as the most widespread type of branded CF and chose the relevant empirical setting of “research CF” run by universities which seem to be more and more interested in connecting branding and fundraising efforts through the active involvement of their “relational circles”. Accordingly, the authors surveyed an extensive sample of students as a primary stakeholder group of potentially engaged backers from one of the first Italian universities to launch a CF program and used structural equation modelling to test the research hypotheses.FindingsThe authors found that, despite the CF domain considered, the choices made by backers (counterintuitively, women, in particular) manifest themselves as mostly self-oriented. This is partly explained by brand identification, which fully mediates the effect of brand pride and partially mediates the effect of brand respect (BR) on funding intention. Moreover, BR also directly drives CF choices.Originality/valueThis study portrays a remarkably different CF playground compared with conventional campaigns for both project proponents and backers with several theoretical and managerial implications.

Developing an Islamic crowdfunding model: a new innovative mechanism to finance SMEs in the Middle East

PurposeThe purpose of this study is to investigate and discuss the viability of Islamic crowdfunding (ICF) as an alternative form of financing small and medium enterprises (SMEs) in the Middle Eastern and Islamic business environment. This study raised essential questions: what is the perception of ICF in the Middle East? Does the Middle East region really need an Islamic crowdfunding model to support SMEs? Is it possible to create a crowdfunding platform complaint with Sharia? What are the requirements for developing an Islamic crowdfunding model?Design/methodology/approachThe methodology followed to answer these questions is a qualitative research design depends on in-depth interviews, literature review, historical analysis and critical discussion. Data analysis was conducted using NVivo to analyze 25 in-depth interviews with Islamic scholars, Sharia board members and Islamic finance experts from different Middle East countries such as Saudi Arabia, Kuwait, Egypt, Iraq, UAE and Bahrain. In addition, more than 115 transcriptions, memos and research articles were used.FindingsThe study provides a new Islamic Sharīʿah-compliant crowdfunding model as the main outcome of this study. In addition, the content analysis revealed four main themes to be the essential pillars to develop the ICF model. These provisions of Islamic Sharia are: Project Idea (Halal) (28.5%), Funding Goal (36%), Return and Risk (14%) and Funding Commitments (21.5%). The findings also revealed that the four types of crowdfunding (reward-based crowdfunding, donation-based crowdfunding, loan-based crowdfunding and equity-based crowdfunding) are legal and supported by evidence from Quran and Sunnah.Originality/valueDespite the critical development in Islamic finance and the expanding number of young Muslims slanting digital Islamic services, empirical studies exploring this issue in the Middle East is still inadequate. Further, ICF has increased attention and there is an urgent need for financing new SMEs in the Middle East.

An Exploratory Pledging Framework of Crowdfunding for Utilities Tunnel Engineering Project

This paper gives an exploratory mathematical framework for crowdfunding pledging of utilities tunnel engineering project. For two typical types of “All-or-Nothing” and “Keep-it-All” platforms, it analyzes the crowdfunding process how to operate on the platforms for the project. There are four types of crowdfunding modes, and a utilities tunnel project can flexibly choose one or several crowdfunding types analyzed in this paper to improve project construction according to the status of the project. Debt crowdfunding should design rational interest payment mechanism and Macaulay duration, and equity crowdfunding should consider the backers may get dividend and capital revenue for a utilities tunnel project. Simulation analyses of debt crowdfunding and equity crowdfunding give some cases for project fulfillment. The founder of reward crowdfunding can give free or low price energy products to the backers, while the backers of donation crowdfunding are completely philanthropic to supply the pledged capital.

Prioritising crowdfunding benefits: a fuzzy-AHP approach.

The current research aims to explore and prioritize the key benefits that influence the acceptance of crowdfunding as a fund-raising tool, either directly or indirectly. The study utilized a multidisciplinary approach to find out the varied benefits of crowdfunding. The study also prioritized the benefits by applying the buckley fuzzy-AHP technique. The results indicate the various benefits of crowdfunding. The study’s results suggest fund-raising (FR), venture viability (VV), cost structure (CS), customer relationships (CR), demand building (DB), general strategy (GS), market intelligence (MI), personal sphere (PS), business ecosystem (BE), team development (TD) and product lifecycle (PL) are the benefits associated with the crowdfunding process. The findings also suggest that the topmost benefit of crowdfunding is FR. But our study has not categorized the benefits according to different types of crowdfunding, and the study’s findings cannot be generalized as the study was conducted in India. The study highlighted the critical financial and non-financial benefits of crowdfunding which can help the entrepreneurs to have more insightful knowledge of the potential benefits of crowdfunding. Studying the financial and non-financial benefits of crowdfunding can further help the entrepreneurs utilize crowdfunding platforms, depending on the need, to provide the right solution to their requirements. This research is the first study to apply the buckley fuzzy-AHP technique to prioritize the multidisciplinary benefits of crowdfunding, thereby widening the knowledge base of academicians and entrepreneurs.

The art of crowdfunding arts and innovation: the cultural economic perspective

Crowdfunding is an innovation from the cultural sector that has found broad applications in other aspects of the economy. We document that cultural economics provides a refined structure to explain much of the crowdfunding phenomenon, which will be useful for any research on this topic. Based on central themes of cultural economics (including quality and demand uncertainty, socially interdependent demand formation, public good attributes, and intrinsic motivation to create), we extend on the current understanding in the crowdfunding literature regarding three fundamental questions: (1) under what circumstances is crowdfunding a superior alternative to traded means of financing innovative projects? (2) What types of crowdfunding are best suited for specific (cultural and creative) industries (CCI)? (3) What is the potential of crowdfunding for cultural and creative industries? Overall, we describe crowdfunding as a flexible tool for mitigating various, fundamental challenges in CCI and beyond. We also identify limitations of crowdfunding, which for now, severely restrict its application. Arguably, the main boon of crowdfunding for cultural economics is not so much that it makes markets (for cultural products) much more efficient and fosters growth. Instead, crowdfunding enables sophisticated empirical research on central topics of cultural economics, and a rich and diverse literature has begun lifting that treasure.

Understanding the Potentials and Challenges of Agricultural Technology Based Crowdfunding in Malaysia

Crowdfunding is a new era financing alternative. It has been well accepted worldwide and the sustainability was empirically proven. Despite the popularity, rapid growth, and overwhelming acceptability worldwide, yet still to be unfamiliar relatively to many people. Especially in the Malaysian context where there is very little understand about how, why, where, when and what type of crowdfunding (business area) users prefer to engage. Accordingly, agriculture is yet to be among the Malaysian main industries since post-independence. However, as reported for the past couple of years, the Growth Domestic Product (GDP) for agriculture is still far behind Manufacturing and Services industries. Among the issues were low up take of agriculture technology and innovations due to high initial investment, high risk, hard to access for loan. As crowdfunding is a new emerging financing alternative, thus this paper is to understand the potentials and challenges of Agricultural Technology-Based Crowdfunding (ATCF). For a better understanding, we performed a qualitative study based on semi-structured interviews of above 18 years old Malaysian citizen. The respondents were randomly engaged. Data from the interviews were later transcribed into verbatim, analysed within and cross cases, coded, categorised, and grouped into the emerging themes. The findings were displayed in a table in responding to the research objectives. Few future research have also been identified and proposed to strengthen the study on the subject matter.

Sustainable entrepreneurs: what drives them to engage in different crowdfunding types?

PurposeSustainable entrepreneurs face additional challenges in fundraising. Crowdfunding is emerging as a compelling alternative to traditional sources of capital with a growing body of research outlining its characteristics and discussing mainly its antecedents. Yet little is known about the crowdfunding behaviour of sustainable entrepreneurs. The purpose of this paper is to explore sustainable entrepreneurs' crowdfunding landscape namely the relation between motivation and different crowdfunding types.Design/methodology/approachBased on a unique dataset of French sustainable entrepreneurs, this paper adopts a qualitative case study approach by conducting in-depth interviews with the entrepreneurs. This was complemented by secondary data collected from company websites and crowdfunding platforms.FindingsThis study presents a conceptual framework that outlines and maps the drivers that lead sustainable entrepreneurs to engage with different crowdfunding types (donation, reward, mixed and equity) by unravelling a more granular understanding of the key and condition-based additional drivers within the context of sustainable entrepreneurial crowdfunding.Originality/valueEntrepreneurs are taking advantage of crowdfunding in order to raise funds. This manuscript offers empirical insights into the under-investigated question of what drives sustainable entrepreneurs to engage in crowdfunding and to what ends. This research also adds texture to prior findings about general motivations of entrepreneurs to seek crowdfunding. These insights inform research and practice on sustainable entrepreneurial crowdfunding, and entrepreneurial crowdfunding in general.

Model Types of Crowdfunding: a Comparative Analysis of the Russian and European Experience

The article is devoted to the analysis of modern European model types of crowdfunding and the Russian practice of crowdfunding. The methodological component of the work was made up of general scientific and special methods, which include statistical and comparative analysis. The purpose of this study is to compare the modern European crowdfunding market with the Russian alternative finance market. At the first stage, the process of transformation of model types of crowdfunding in the European region and the UK from 2015 to the present has been studied. At the second stage, the situation on the Russian crowdfunding market is considered. As a result of the comparison of the European and Russian alternative finance markets, the latter has revealed a huge lag in terms of the variety of model types of crowdfunding offered, available and used on the market, as well as the volume of resources attracted through crowdfunding platforms.

Sustainable Entrepreneurs: What Drives Them to Engage in Different Crowdfunding Types?

The crowdfunding of entrepreneurial opportunities has received a growing and emergent scholarly interest in primarily tackling the antecedents and consequences of crowdfunding success as well as entrepreneurial characteristics that attract crowdfunding. However, there is limited knowledge on the crowdfunding of sustainable entrepreneurship and particularly the reasons that drive sustainable entrepreneurs to participate in crowdfunding. This issue is timely and merits special attention given the urgency and relevance of sustainable development for companies and society alike in the years to come. Based on data collected from sustainable entrepreneurs based in France, this study investigates the drivers that lead sustainable entrepreneurs to engage in crowdfunding. Building on our qualitative case study, we develop a conceptual framework outlining the key drivers and additional drivers that guide sustainable entrepreneurs to crowdfunding types. We discuss contributions, implications and future research on the crowdfunding and sustainable entrepreneurship literature.

Crowdfunding: The Concept, Types and Risks

The paper is devoted to the study of the essence of crowdfunding as an innovative mechanism of investment activity. The author studies the peculiarities of collective investing, analyzes the process of the formation of crowdfunding as a particular case of a broader phenomenon – crowdsourcing, examines the types of crowdfunding (crowdrewarding, crowdinvesting, crowdlending), examines statistical data characterizing the development of crowdfunding relations in Russia and abroad, highlights the risks associated with crowdfunding. According to the author, the peculiarities of crowdfunding are related to the fact that it is, on the one hand, a form of collective investment activity, and on the other hand, a form of crowdsourcing. It involves the investment of insignificant (as compared with the total required amount) funds, aimed at financing projects at the early stages of implementation (start-ups). One of the participants in the crowdfunding relationship is an intermediary between the investor and the recipient of investments – an investment platform. The purpose of investment may be togenerate income, as well as other benefits, in particular goods, priority access to an innovative product, discounts, or the achievement of a socially useful result.

Переваги та ризики краудфандингу як моделі фінансування стартапів і проектів громадського розвитку

Crowdfunding as a tool for alternative financing has emerged relatively recently and is of limited use in Ukraine today. At the same time, it has significant potential, which can contribute to the implementation of a wide range of projects that for various reasons are not of interest to traditional lenders or investors. The aim of the article is to determine the benefits of crowdfunding for its participants, the peculiarities of the implementation of certain types of crowdfunding and identify risks that may be generated by them, as well as develop practical recommendations for crowdfunding campaigns by entrepreneurs and authors of community development projects. The article identifies the benefits of crowdfunding for project authors (low cost of capital, access to information and potential investors) and investors (clarity, low risks, access to new products, the ability to support creative ideas), substantiates the role of crowdfunding platforms in realizing the benefits of crowdfunding. The advantages and disadvantages of using certain types of crowdfunding are described. Recommendations for planning and implementation of the main stages of crowdfunding campaigns - idea development, target audience determination, research, communication, project budgeting, reward system development, campaign schedule development – are developed. The factors of choosing a crowdfunding platform for hosting the project are determined. The possibility of using crowdfunding for collective financing of socio-cultural projects within the public budgets of the united territorial communities is shown. The risks of using crowdfunding for project authors and potential investors are identified. Those risks are primarily related to realistic expectations and proper preparation for the fundraising campaign by project authors, as well as the lack of guarantees for investors in the event of problems or bankruptcy of the crowdfunding platform. The author highlights that the growth of public awareness about the possibilities of implementing social or business initiatives through crowdfunding platforms will contribute to the development of platforms, improvement of technological equipment, and expansion of their range of services.