Crowdfunding and the Role of Managers in Ensuring the Sustainability of Crowdfunding Platforms

Abstract

Crowdfunding is an alternative way of finance and exchange where those seeking funding and those looking to invest or donate can be matched. Creators and entrepreneurs can make use of online crowdfunding platforms to expand the pool of potential investors and donors, who contribute via the Internet to the financing their online project. Yet, crowdfunding is not just about raising money, but also about market testing, engaging potential customers and target groups and exploiting the advantages of community and proximity. Using short cases studies, interviews with platform managers and a review of the literature this report explores the current state of crowdfunding, and makes recommendations for policy and research.

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