The Rise of Crowdfunding

44 Pages Posted: 28 Mar 2022 Last revised: 6 Sep 2023

See all articles by Thomas Lambert

Thomas Lambert

Rotterdam School of Management, Erasmus University; Erasmus Research Institute of Management (ERIM)

Date Written: February 24, 2022


In this paper, I provide an overview of the economic literature on crowdfunding. I first describe the crowdfunding process, its actors and markets. Then I outline the dynamics of crowdfunding campaigns and discuss economic mechanisms driving them. I also present the strategies crowdfunding platforms adopt to support campaigns and to ultimately sustain their growth trajectories. In addition, I discuss the advantages that tokenization can bring to crowdfunding. I end this paper with insights into the gains of crowdfunding for entrepreneurship.

Keywords: crowdfunding, peer-to-peer lending, online platforms, campaign dynamics, tokenization, informational externalities, payoff externalities, entrepreneurship

JEL Classification: G23, L26

Suggested Citation

Lambert, Thomas, The Rise of Crowdfunding (February 24, 2022). Available at SSRN: or

Thomas Lambert (Contact Author)

Rotterdam School of Management, Erasmus University ( email )

P.O. Box 1738
Rotterdam, 3000 DR


Erasmus Research Institute of Management (ERIM) ( email )

P.O. Box 1738
3000 DR Rotterdam

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