30 Pages Posted: 30 May 2014 Last revised: 30 Jun 2015
Date Written: May 28, 2014
Although the term “crowdfunding” was only recently coined in 2006, the more specific category of crowdfunding known as debt crowdfunding (or credit-based crowdfunding) is built on a much older concept. It represents the latest incarnation of social lending, which has existed for centuries. This paper examines the origins and development of credit-based crowdfunding from the “friendly societies” of the 18th century to the crowdsourced peer-to-peer lending platforms of today. This paper provides chronology and details about more than one hundred early debt crowdfunding sites.
Keywords: Crowdfunding, Credit-Based Crowdfunding, Debt Crowdfunding, Crowdlending, Social Lending, Peer-to-Peer Lending, P2P Lending, Banking, Lending, Entrepreneurial Finance, Small Business Finance
JEL Classification: D71, E44, G21, G28, H63, M13, M14
Suggested Citation: Suggested Citation