- Consulting Editors
- Finance of New industries
- The Returns to Entrepreneurship
- Risk Attitudes and Private Business Equity
- New Firm Financing and Performance
- New Perspectives On Entrepreneurial Capital Structure
- The Capital Structure of Family Firms
- Influence of Internal Factors on the Use of Equity-and Mezzanine-Based Financing in Family Firms
- Planning For Entrepreneurial Finance And Capital: A Critical Review Of The Importance Of Teaching Business Planning
- Funding Gaps
- Availability of Credit to Small Firms Young and Old: Evidence from the Surveys of Small Business Finances
- Asymmetric Information, Credit Market Condition, and Entrepreneurial Finance
- Alternative Types Of Entrepreneurial Finance
- Angel Investors and Their Investments
- Firm Growth, Schumpeterian Entrepreneurship, and Venture Capital
- Why Do Firms Go Public?
- Valuation Of IPOs
- Trade Credit and Its Role in Entrepreneurial Finance
- Factoring and Invoice Financing
- Project Finance
- Hedge Fund Asset-Based Lending
- Business Taxation, Corporate Finance, and Economic Performance
- Financial Capital among Minority-Owned Businesses
- Financing Women-Owned Firms: A Review Of Recent Literature
- International Differences In Entrepreneurial Finance
- Entrepreneurial Finance in Weak Institutional Environments
- Microfinance for Entrepreneurs
- The Past and Future of Innovations in Microfinance
- Index of Names
Abstract and Keywords
This article discusses crowdfunding as an alternative way of financing projects, with a focus on small, entrepreneurial ventures. It first provides a description of crowdfunding and discusses existing research on the topic. The next section looks at crowdfunding in the context of entrepreneurial finance and thereby describes factors affecting entrepreneurial preferences for crowdfunding as a source of finance. Thereafter it elaborates different business models used to raise money from the crowd, in particular with respect to the structure of the crowdfunding process. Building on this discussion, the article presents and discusses extensively a case study, Media No Mad (a French start-up). It concludes with recommendations for entrepreneurs seeking to make use of crowdfunding and with suggestions for researchers about yet-unexplored avenues of research.
Armin Schwienbacher is professor of finance at the Universite Lille Nord de France-SKEMA Business School (France). He is also guest faculty at Duisenberg School of Finance (The Netherlands). He obtained his PhD in finance at the University of Namur (Belgium). His dissertation focused on exit strategies of venture capitalists. In 2001-2002, he was a visiting scholar at the Haas School of Business, UC Berkeley (USA). He teaches courses in corporate finance at numerous universities, financial institutions, and international conferences, and his work has been published in various international academic journals, including Journal of Financial Intermediation, Economic Journal, Journal of Banking and Finance, Entrepreneurship Theory and Practice, Journal of Business Venturing, and Financial Management.
Benjamin Larralde is a master student specializing in entrepreneurship. He graduated with a degree in business studies from the University of Amsterdam (The Netherlands) in 2009, where he studied the topic of crowd funding for start-ups for his master thesis. He is currently following another year-long master degree at the University of Luxembourg in order to acquire deeper knowledge in all areas of entrepreneurship. In the meantime, he is also launching a French platform allowing all creatives to leverage the power of the crowd in order to promote and fund their projects (http://fansnextdoor.com).
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