Crowdfunding: Some Empirical Findings and Microeconomic Underpinnings

Abstract

This article reviews some recent developments in the study of crowdfunding -- i.e., the practice of raising funds through an open call on the Internet. It also shows how microeconomic theory can help us understand some important aspects of crowdfunding that go beyond the finance sphere of the firm. A special attention is devoted to the role and behavior of crowdfunding platforms, which intermediate between entrepreneurs and contributors. Throughout the article, the Belgian market for crowdfunding serves as the main source of illustrations.

Keywords: crowdfunding, multisided platforms, information asymmetry, price discrimination

JEL Classification: G32, L11, L13, L15, L21, L26