The Role of Crowdfunding in Entrepreneurial Finance

Handbook of Research on Crowdfunding, Forthcoming

42 Pages Posted: 31 Aug 2018

See all articles by Gary Dushnitsky

Gary Dushnitsky

London Business School; University of Pennsylvania - Management Department

Diego Zunino

SKEMA Business School; Université de Nice Sophia Antipolis - Groupe de Recherche en Droit, Economie et Gestion (GREDEG)

Date Written: July 31, 2018

Abstract

Crowdfunding platforms have exhibited explosive growth over the past decade. In this paper, we map out what we know about crowdfunding, and chart directions for future work. We argue the crowdfunding literature simultaneously experiences the ‘problem of riches’ and the ‘dearth of evidence’.

The ‘problem of riches’ is a consequence of the popularity of crowdfunding research across scholarly disciplines: keen insights sit in disciplinary silos. Scholars may be ignorant of work published beyond their disciplinary journals and may overlook or replicate extant findings due to divergent terminologies and frameworks. The second problem, the ‘dearth of evidence’, has to do with a unique feature of knowledge production in the crowdfunding literature. In particular, most of the studies analyse funding patterns using data from a single platform. Hence, we know little whether extant work can be replicated to other platforms.

We bridge the disciplinary divide such that we can take stock of the crowdfunding literatures, and advance a productive guide for future research efforts in the context of entrepreneurial finance. We draw on key themes in the literature to organize our review of existing crowdfunding studies. The contributions of the chapter are threefold. First, we document crowdfunding patterns; second, we highlight areas of agreement as well as inconsistencies; third, we connect the aforementioned findings to the broader entrepreneurial finance literature.

Keywords: crowdfunding, entrepreneurship, entrepreneurial finance, venture financing

JEL Classification: G24, L26, M13

Suggested Citation

Dushnitsky, Gary and Zunino, Diego, The Role of Crowdfunding in Entrepreneurial Finance (July 31, 2018). Handbook of Research on Crowdfunding, Forthcoming. Available at SSRN: https://ssrn.com/abstract=3237356 or http://dx.doi.org/10.2139/ssrn.3237356

Gary Dushnitsky

London Business School ( email )

Sussex Place
Regent's Park
London, London NW1 4SA
United Kingdom

HOME PAGE: http://faculty.london.edu/gdushnitsky/index.html

University of Pennsylvania - Management Department ( email )

The Wharton School
Philadelphia, PA 19104-6370
United States

Diego Zunino (Contact Author)

SKEMA Business School ( email )

60 rue Dostoïevski
Sophia Antipolis, 06902
France

Université de Nice Sophia Antipolis - Groupe de Recherche en Droit, Economie et Gestion (GREDEG) ( email )

250, rue Albert Einstein
Valbonne, 06560
France

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