Abstract

http://ssrn.com/abstract=2151179
 
 

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Individual Crowdfunding Practices


Paul Belleflamme


CORE and Louvain School of Management, UCL (Université Catholique de Louvain); CESifo (Center for Economic Studies and Ifo Institute)

Thomas Lambert


UCLouvain; Université Lille Nord de France - SKEMA

Armin Schwienbacher


Univ. Lille Nord de France - SKEMA Business School

March 27, 2013

Venture Capital: An International Journal of Entrepreneurial Finance, 2013, 15(4), 313-333.

Abstract:     
This study investigates characteristics of individual crowdfunding practices and drivers of fundraising success, where entrepreneurs can tailor their crowdfunding initiatives better than on standardized platforms. Our data indicate that most of the funds provided are entitled to receive either financial compensations (equity, profit-share arrangement) or non-financial benefi ts (final product, token of appreciation), while donations are less common. Moreover, crowdfunding initiatives that are structured as non-profit organizations tend to be significantly more successful than other organizational forms in achieving their fundraising targets, even after controlling for various project characteristics. This finding is in line with theoretical arguments developed by the contract failure literature that postulates that non-profit organizations may find it easier to attract money for initiatives that are of interest for the general community due to their reduced focus on profits.

Number of Pages in PDF File: 35

Keywords: crowdfunding, pre-ordering, non-profi t

JEL Classification: G32, L11, L13, L15, L21, L31

Accepted Paper Series


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Date posted: September 24, 2012 ; Last revised: January 23, 2014

Suggested Citation

Belleflamme, Paul and Lambert, Thomas and Schwienbacher, Armin, Individual Crowdfunding Practices (March 27, 2013). Venture Capital: An International Journal of Entrepreneurial Finance, 2013, 15(4), 313-333.. Available at SSRN: http://ssrn.com/abstract=2151179 or http://dx.doi.org/10.2139/ssrn.2151179

Contact Information

Paul Belleflamme
CORE and Louvain School of Management, UCL (Université Catholique de Louvain) ( email )
34 Voie du Roman Pays
B-1348 Louvain-la-Neuve, B-1348
Belgium
+32 10 47 82 91 (Phone)
+32 10 47 43 01 (Fax)
HOME PAGE: http://perso.uclouvain.be/paul.belleflamme/Site/Home.html
CESifo (Center for Economic Studies and Ifo Institute)
Poschinger Str. 5
Munich, DE-81679
Germany
Thomas Lambert (Contact Author)
UCLouvain ( email )
1 place des Doyens
Louvain-la-Neuve, 1348
Belgium
HOME PAGE: http://sites.google.com/site/lambertthom
Université Lille Nord de France - SKEMA ( email )
Rue de Mulhouse, 2 BP 381
Lille Cédex, 59020
France
Armin Schwienbacher
Univ. Lille Nord de France - SKEMA Business School ( email )
Lille
France
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