Entrepreneurial Implications of Crowdfunding as Alternative Finance Source for Innovations

Lehner, O. M., Grabmann, E., & Ennsgraber, C. (2016). Entrepreneurial implications of Crowdfunding as alternative funding source for innovations. Routledge Venture Capital, 18(1), Forthcoming

20 Pages Posted: 29 Oct 2015

See all articles by Othmar Manfred Lehner

Othmar Manfred Lehner

Hanken School of Economics - Department of Accounting; University of Applied Sciences Upper Austria; Middlesex University of London

Elisabeth Grabmann

University of Applied Sciences Upper Austria

Carina Ennsgraber

Upper Austria - University of Applied Sciences Upper Austria

Date Written: October 28, 2015

Abstract

Crowdfunding (CF) is a form of early-stage financing for innovative ventures, which has seen tremendous growth in the past few years - partly because it provides a desperately needed alternative to the scarcity of traditional sources of finance during the so called ‘credit crunch’. CF ranges from a simple form of pre-financing to full grown debt or equity investments, but they are typically small pledges that can add up to incredible amounts. Scholarly literature has only started to examine CF and is still in an early stage when it comes to identifying implications for entrepreneurs apart from often over-simplified anecdotal evidence of success. The authors argue that CF can by no means be seen from a financial perspective only, rather it needs to be addressed as a bundle of processes leading to innovative entrepreneurial business-models. This qualitative study explores four extreme cases from the ICT sphere to find out non-financial implications of Crowdfunding as alternative funding source for innovative entrepreneurs and their business models.

Keywords: Crowdfunding, Innovation, Entrepreneurship, Globalisation, Business-Model, Case Study

JEL Classification: M13, G24

Suggested Citation

Lehner, Othmar Manfred and Grabmann, Elisabeth and Ennsgraber, Carina, Entrepreneurial Implications of Crowdfunding as Alternative Finance Source for Innovations (October 28, 2015). Lehner, O. M., Grabmann, E., & Ennsgraber, C. (2016). Entrepreneurial implications of Crowdfunding as alternative funding source for innovations. Routledge Venture Capital, 18(1), Forthcoming. Available at SSRN: https://ssrn.com/abstract=2681974

Othmar Manfred Lehner (Contact Author)

Hanken School of Economics - Department of Accounting ( email )

FI-00101 Helsinki
Finland

University of Applied Sciences Upper Austria ( email )

Wehrgrabengasse 1-3
Steyr, Upper Austria 4400
Austria

Middlesex University of London ( email )

The Burroughs
London, NW4 4BT
United Kingdom

Elisabeth Grabmann

University of Applied Sciences Upper Austria ( email )

Wehrgrabengasse 1-3
Steyr, Upper Austria 4400
Austria

Carina Ennsgraber

Upper Austria - University of Applied Sciences Upper Austria ( email )

Franz-Fritsch-Strasse 11
Wels, A-4600
Austria

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