The Rise of Crowdfunding

44 Pages Posted: 28 Mar 2022

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

Abstract

Crowdfunding is still a relatively new phenomenon, but it rapidly emerged as an integral part of the entrepreneurial finance landscape. In this paper, I provide an overview the crowdfunding phenomenon. 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 and growth.

Keywords: crowdfunding, peer-to-peer lending, online platforms, campaign dynamics, tokenization, informational externalities, payoff externalities, entrepreneurial finance, real effects

JEL Classification: G23, L26

Suggested Citation

Lambert, Thomas, The Rise of Crowdfunding (February 24, 2022). Available at SSRN: https://ssrn.com/abstract=4042613 or http://dx.doi.org/10.2139/ssrn.4042613

Thomas Lambert (Contact Author)

Rotterdam School of Management, Erasmus University ( email )

P.O. Box 1738
Rotterdam, 3000 DR
Netherlands

HOME PAGE: http://www.thomaslambert.org

Erasmus Research Institute of Management (ERIM) ( email )

P.O. Box 1738
3000 DR Rotterdam
Netherlands

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