Choosing Crowdfunding: Why do Entrepreneurs Choose to Engage in Crowdfunding?

Louise Bech Junge, Iben Cleveland Laursen, Kristian Roed Nielsen*

*Corresponding author af dette arbejde

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Abstrakt

As crowdfunding becomes an increasingly common source of financing for a diverse range of entrepreneurs, this paper seeks to add to the literature by qualitatively exploring why entrepreneurs choose to engage in crowdfunding. We find that entrepreneurs often engage in crowdfunding as a first resort with three distinct motives; to raise capital, to validate a business idea, or to create brand awareness. Especially reward-based crowdfunding is often seen as a tool for validate a business idea or generating awareness not as a source of finance. Finally we observe that entrepreneurs’ motives for engaging in crowdfunding often correlate with their maturity and thus motivations for engaging in crowdfunding shift as they mature.
OriginalsprogEngelsk
Artikelnummer102385
TidsskriftTechnovation
Antal sider10
ISSN0166-4972
DOI
StatusUdgivet - 9 sep. 2021

Bibliografisk note

Epub ahead of print. Published online: 9 September 2021.

Emneord

  • Crowdfunding
  • Entrepreneurship
  • Finance
  • Life cycle
  • Motivation

Citationsformater