Crowdfunding as Donations to Entrepreneurial Firms

The bulk of today's (“preorder-,” “reward-,” “gift-,” and “donation-based”) crowdfunding raises funds for small, private entrepreneurial ventures without granting funders claims to the projects’ income or ability guarantee realization delivery project outcomes. We theorize show empirically – via a mixed-method approach applied representative remarkably informative case that payoff structure crowdfunders, akin public good contribution problem, leads tangible value main outputs exerting little influence on contributions crowdfunding. This then question which funder motivations fund seekers may have address crowdfund their projects. demonstrate especially large role non-pecuniary pinpoint three particular profit-seeking entrepreneurs stimulate be financed through findings hold important implications entrepreneurs’ strategies, platform design, our understanding how this funding institution works in general. study also adds emerging research nature