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Toward a Typology of Crowdfunding Motivations

Toward a Typology of Crowdfunding Motivations

Leela Vedantam
Copyright: © 2019 |Pages: 21
ISBN13: 9781522583622|ISBN10: 1522583629|EISBN13: 9781522583639
DOI: 10.4018/978-1-5225-8362-2.ch008
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MLA

Vedantam, Leela. "Toward a Typology of Crowdfunding Motivations." Crowdsourcing: Concepts, Methodologies, Tools, and Applications, edited by Information Resources Management Association, IGI Global, 2019, pp. 152-172. https://doi.org/10.4018/978-1-5225-8362-2.ch008

APA

Vedantam, L. (2019). Toward a Typology of Crowdfunding Motivations. In I. Management Association (Ed.), Crowdsourcing: Concepts, Methodologies, Tools, and Applications (pp. 152-172). IGI Global. https://doi.org/10.4018/978-1-5225-8362-2.ch008

Chicago

Vedantam, Leela. "Toward a Typology of Crowdfunding Motivations." In Crowdsourcing: Concepts, Methodologies, Tools, and Applications, edited by Information Resources Management Association, 152-172. Hershey, PA: IGI Global, 2019. https://doi.org/10.4018/978-1-5225-8362-2.ch008

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Abstract

Crowdfunding is a modern approach to provide real-time financial assistance to those entrepreneurs who are interested in starting seed ventures. This phenomenon is developing slowly and the financial regulators are considering options to put appropriate checks and balances to regulate these activities. Although the experience of crowdfunding may not be satisfying as it ought to be, but there a sense of willingness on the part of the civil society to participate in crowdfunding as it is associated with a good cause. It is important to note that crowdfunding as a system is being based amongst small and mid-sized income group members. The motivation to support the cause of entrepreneurs is growing as the fund lenders are novice and in the threshold stage of supporting such seed ventures. The motivations of fund lender differ depending on their personal and environmental factors, especially in connection to the emerging laws and mandatory disclosures under the financial regulatory regime. In this paper, the focus is on (i) identification of what motivates fund lenders to support entrepreneurs and the impact of the fund movement.

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