Abstract
Crowdfunding has become important in recent years. However, there is no comprehensive overview of the economic literature on this topic. This paper provides an overview of crowdfunding literature, classified in terms of the main actors (capital seekers, capital providers, and intermediaries), and presents important research questions for future research.
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Notes
- 1.
The “crowd” refers to a large number of people who come together at a specific location (here, on the Internet; the “Internet community”).
- 2.
In German-speaking countries, the term crowdinvesting is often used to distinguish equity-based crowdfunding from other forms of crowdfunding.
- 3.
July 31, 2014.
- 4.
The publication of the data of the P2P lending platform Prosper.com in the U.S. in 2007 made an important contribution to the increasing research volume (Bachmann et al., 2011).
- 5.
Crowdfunding models in the U.S. that provide a financial return for capital providers (lending- and equity-based crowdfunding) are in the scope of the Securities Law of 1933 (Bradford, 2012).
- 6.
A successful crowdfunding transaction sends a positive signal about the venture to various market participants.
- 7.
A social entrepreneur is “a person who establishes an enterprise with the aim of solving social problems or effecting social change.” Retrieved May 10, 2014, from http://www.oxforddictionaries.com/definition/english/social-entrepreneur.
- 8.
This result confirms the assumption that the first people to participate in a crowdfunding transaction are typically family and friends. They know the entrepreneur and want to support the venture and its team (Agrawal et al., 2011).
- 9.
Crowdfunding activities worldwide increased from US$1.5 billion in 2011 to US$2.7 billion in 2012 and were expected to reach US$5.1 billion in 2013. Massolution Report 2013. Retrieved May 8, 2014, from http://www.crowdsourcing.org/editorial/2013cf-the-crowdfunding-industry-report/25107?utm_source=website&utm_medium=text&utm_content=LP+bottom&utm_campaign=2013CF+Launch.
- 10.
The proposal for these specifications was released by the SEC in October 2013 in a 585-page document for public comments. Since the period for comments expired in February 2014, the market has been awaiting final SEC specifications under Title III of the JOBS Act. The proposal is available at http://www.sec.gov/rules/proposed/2013/33-9470.pdf (Accessed 15 May 2014). For further discussion of the proposal, see Guzik (2014).
- 11.
- 12.
Crowdfunding platforms often determine a maximum funding amount per transaction (funding limit).
- 13.
The funding is closed the moment it reaches the funding limit, even if more capital providers would be willing to invest.
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Moritz, A., Block, J.H. (2016). Crowdfunding: A Literature Review and Research Directions. In: Brüntje, D., Gajda, O. (eds) Crowdfunding in Europe. FGF Studies in Small Business and Entrepreneurship. Springer, Cham. https://doi.org/10.1007/978-3-319-18017-5_3
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