Abstract
Purpose – The purpose of this paper is to investigate the extent to which rewards-based crowdfunding really does provide financial support for start-ups and small businesses relative to other types of activity such as creative and cultural projects.
Design/methodology/approach – The paper reports findings from a series of multiple regression on a unique data set covering around 205,000 rewards-based crowdfunding projects across a number of leading platforms in the USA, the UK and Canada.
Findings – The authors report two main findings. First, rewards-based crowdfunding is highly inequitably distributed and that success is concentrated within a relatively small number of platforms and campaigns.
Second, crowdfunding campaigns explicitly related to business perform relatively poorly compared with those in other categories; particularly those in creative areas such as music and dance.
Originality/value – These findings call into question the extent to which rewards-based crowdfunding really is a means by which significant numbers of start-ups can bridge gaps in the provision of finance
Design/methodology/approach – The paper reports findings from a series of multiple regression on a unique data set covering around 205,000 rewards-based crowdfunding projects across a number of leading platforms in the USA, the UK and Canada.
Findings – The authors report two main findings. First, rewards-based crowdfunding is highly inequitably distributed and that success is concentrated within a relatively small number of platforms and campaigns.
Second, crowdfunding campaigns explicitly related to business perform relatively poorly compared with those in other categories; particularly those in creative areas such as music and dance.
Originality/value – These findings call into question the extent to which rewards-based crowdfunding really is a means by which significant numbers of start-ups can bridge gaps in the provision of finance
| Original language | English |
|---|---|
| Pages (from-to) | 147-162 |
| Number of pages | 16 |
| Journal | Journal of Small Business and Enterprise Development |
| Volume | 25 |
| Issue number | 1 |
| Early online date | 14 Dec 2017 |
| DOIs | |
| Publication status | Published - 2018 |
Bibliographical note
Copyright © and Moral Rights are retained by the author(s) and/ or other copyright owners. A copy can be downloaded for personal non-commercial research or study, without prior permission or charge. This item cannot be reproduced or quoted extensively from without first obtaining permission in writing from the copyright holder(s). The content must not be changed in any way or sold commercially in any format or medium without the formal permission of the copyright holders.Keywords
- Crowdfunding
- Online
- Finance
- start-ups
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Thang Nguyen
- Research Centre for Financial & Corporate Integrity - Assistant Professor Research - Finance
Person: Teaching and Research