Crowdfunding: A novel source of finance? Lessons for small firms from a synthesis of the literature

Crowdfunding is an emerging phenomenon whereby agents make an open call for funding to large numbers of potential contributors (‘the crowd’), usually via online intermediaries known as platforms. While the size and variety of global crowdfunding practices continue to grow rapidly, academic research is only now beginning to form a coherent body of knowledge relating to this potentially disruptive financial phenomenon. This aim of this study is to bring together the research literature on crowdfunding from a wide variety of different disciplines and subject areas into a collective whole with the specific aim of providing advice and guidance to small firms seeking to raise entrepreneurial finance. From summarising the current state of knowledge on crowdfunding and providing advice to entrepreneurs, our study contributes to the literature by stimulating various conventional thinking and beliefs in the field.