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Crowdfunding and the Role of Managers in Ensuring the Sustainability of Crowdfunding Platforms

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  • Javier Ramos

    (Instituto Complutense de Estudios Internacionales (ICEI))

Abstract

Crowdfunding is an alternative way of finance and exchange where those seeking funding and those looking to invest or donate can be matched. Creators and entrepreneurs can make use of online crowdfunding platforms to expand the pool of potential investors and donors, who contribute via the Internet to the financing their online project. Yet, crowdfunding is not just about raising money, but also about market testing, engaging potential customers and target groups and exploiting the advantages of community and proximity. Using short cases studies, interviews with platform managers and a review of the literature this report explores the current state of crowdfunding, and makes recommendations for policy and research.

Suggested Citation

  • Javier Ramos, 2014. "Crowdfunding and the Role of Managers in Ensuring the Sustainability of Crowdfunding Platforms," JRC Research Reports JRC85752, Joint Research Centre.
    • Handle: RePEc:ipt:iptwpa:jrc85752
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    File URL: https://publications.jrc.ec.europa.eu/repository/handle/JRC85752
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    References listed on IDEAS

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    1. BELLEFLAMME, Paul & LAMBERT, Thomas & SCHWIENBACHER, Armin, 2011. "Crowdfunding: tapping the right crowd," LIDAM Discussion Papers CORE 2011032, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    2. Othmar M. Lehner, 2013. "Crowdfunding social ventures: a model and research agenda," Venture Capital, Taylor & Francis Journals, vol. 15(4), pages 289-311, October.
    3. Hemer, Joachim, 2011. "A snapshot on crowdfunding," Working Papers "Firms and Region" R2/2011, Fraunhofer Institute for Systems and Innovation Research (ISI).
    4. Ajay K. Agrawal & Christian Catalini & Avi Goldfarb, 2011. "The Geography of Crowdfunding," NBER Working Papers 16820, National Bureau of Economic Research, Inc.
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    Cited by:

    1. María José Quero & Rafael Ventura & Carol Kelleher, 2017. "Value-in-context in crowdfunding ecosystems: how context frames value co-creation," Service Business, Springer;Pan-Pacific Business Association, vol. 11(2), pages 405-425, June.
    2. Lars Hornuf & Eliza Stenzhorn & Tim Vintis, 2022. "Are sustainability-oriented investors different? Evidence from equity crowdfunding," The Journal of Technology Transfer, Springer, vol. 47(6), pages 1662-1689, December.
    3. Peter Konhäusner, 2021. "Crowdsourcing in Sustainable Retail—A Theoretical Framework of Success Criteria," JRFM, MDPI, vol. 14(2), pages 1-21, February.
    4. Andrea Rey-Martí & Antonia Mohedano-Suanes & Virginia Simón-Moya, 2019. "Crowdfunding and Social Entrepreneurship: Spotlight on Intermediaries," Sustainability, MDPI, vol. 11(4), pages 1-23, February.
    5. Jesús Mauricio Flórez-Parra & Gracia Rubio Martín & Carmen Rapallo Serrano, 2020. "Corporate Social Responsibility and Crowdfunding: The Experience of the Colectual Platform in Empowering Economic and Sustainable Projects," Sustainability, MDPI, vol. 12(13), pages 1-20, June.
    6. Novak, Ivan & Knežević, Blaženka & Škrobot, Petra, 2017. "Crowdfunding of Entrepreneurial Projects in Sport," Proceedings of the ENTRENOVA - ENTerprise REsearch InNOVAtion Conference (2017), Dubrovnik, Croatia, in: Proceedings of the ENTRENOVA - ENTerprise REsearch InNOVAtion Conference, Dubrovnik, Croatia, 7-9 September 2017, pages 94-101, IRENET - Society for Advancing Innovation and Research in Economy, Zagreb.
    7. Swati Gupta & Sahil Raj & Sanjay Gupta & Ajay Sharma, 2023. "Prioritising crowdfunding benefits: a fuzzy-AHP approach," Quality & Quantity: International Journal of Methodology, Springer, vol. 57(1), pages 379-403, February.
    8. Kukurba Maria & Waszkiewicz Aneta, 2018. "Crowdfunding as a Form of Funding for Businesses in the Culturally-Changing Global Economy: A Literature Review," Journal of Intercultural Management, Sciendo, vol. 10(2), pages 99-137, June.
    9. Aneta Ewa Waszkiewicz, 2017. "Financial education and financial literacy in Gen Y - Alternative forms of financing," Working Papers 2017-05, Faculty of Economic Sciences, University of Warsaw.
    10. Yuxin Meng & Lu Liu & Qiying Ran, 2022. "Can Urban Green Transformation Reduce the Urban–Rural Income Gap? Empirical Evidence Based on Spatial Durbin Model and Mediation Effect Model," Sustainability, MDPI, vol. 14(24), pages 1-24, December.
    11. Semen Son Turan, 2021. "Uncovering trust signals in equity crowdfunding: A systematic literature review," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 10(4), pages 215-225, June.
    12. Giuditta DE PRATO & Claudio FEIJÓO & Jean-Paul SIMON, 2014. "Innovations in the Video Game Industry: Changing Global Markets," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(94), pages 17-38, 2nd quart.
    13. Zecong Ma & Sergio Palacios, 2021. "Image-mining: exploring the impact of video content on the success of crowdfunding," Journal of Marketing Analytics, Palgrave Macmillan, vol. 9(4), pages 265-285, December.
    14. Appio, Francesco Paolo & Leone, Daniele & Platania, Federico & Schiavone, Francesco, 2020. "Why are rewards not delivered on time in rewards-based crowdfunding campaigns? An empirical exploration," Technological Forecasting and Social Change, Elsevier, vol. 157(C).
    15. Lars Hornuf & Eliza Stenzhorn & Tim Vintis, 2020. "Are Sustainability-Oriented Investors Different? Evidence from Equity Crowdfunding," CESifo Working Paper Series 8339, CESifo.

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    More about this item

    Keywords

    Crowdfunding; Employability; Work; Employment; Entrepreneurship; Finance; Fund raising; investment; Skills; Internet; Equity; Lending; Reward; Donation; community;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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