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Laying the foundations of technology startups– An inquiry of crowd-funding investment decisions in a developing country

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  • Rizwan, Amina
  • Hanif, Muhammad Shehzad
  • Khan, Talha Zubair Ahmad

Abstract

This research gauges the actual investment behaviors of crowd-funding investors towards technology startups in Pakistan. We hypothesize that perceived risk will obstruct the crowdfunding investment decisions with the countervailing effect of trust in the presence of other boosters like technology awareness, value congruence, and social ties. Rooted in technology acceptance model and theory of planned behavior, we employ structural equation modeling to quantitatively assess the data collected from 273 actual crowd-funding investors. Findings suggest that crowd-funders often rely on their technology awareness, trusted network and social interaction ties while they ignore the value congruence and informativeness for their investment decisions. The age of the funder has no effect but a higher qualification will increase the likelihood of investment decisions.

Suggested Citation

  • Rizwan, Amina & Hanif, Muhammad Shehzad & Khan, Talha Zubair Ahmad, 2025. "Laying the foundations of technology startups– An inquiry of crowd-funding investment decisions in a developing country," Technology in Society, Elsevier, vol. 81(C).
    • Handle: RePEc:eee:teinso:v:81:y:2025:i:c:s0160791x25000016
    DOI: 10.1016/j.techsoc.2025.102811
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