Crowdfunding: principles, trends and issues.

Crowdfunding: principles, trends and issues. (by Stéphane Onnée)

In this chapter, we present a broad overview of crowdfunding practices. Most of our own empirical insights come from analyses of primary or secondary French data. Our discussion is structured in four sections. The first section describes the main features of crowdsourcing and identifies its main advantages and disadvantages. The second section outlines the operating principles and regulatory issues associated with each of the four crowdfunding models. In the third section, we focus on the reward-based model and seek to understand the levers that drive the crowd to mobilize and finance a project. In this dynamic, we highlight the porosity between the different types of crowdsourcing and show that crowdfunding need not be limited to a mere financial contribution. Finally, we identify the fundraiser’s key success factors in managing a crowdfunding campaign.

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Authors: Docent Ecommerce

Document type: Research Study

Publication date: 10-09-2016

Number of pages: 23

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