Advertisement

Crowdfunding – An Innovative Corporate Finance Method and Its Decision-Making Steps

  • Valerie BusseEmail author
  • Michal Gregus
Conference paper
Part of the Advances in Intelligent Systems and Computing book series (AISC, volume 1035)

Abstract

Crowdfunding represents a rather novel alternative of funding new ventures, and has gained increased attention during recent years. However, a distinct positioning of crowdfunding within the range of alternative financial methods and a systematization and preparation of complex decision-structures of the crowdfunding concept in terms of decision making aspects has remained largely unexplored. This research (i) gives a well-defined classification of crowdfunding compared to other financing methods and (ii) provides a clear picture of decision-making steps within the triadic relationship of involved actors.

References

  1. 1.
    Ahlers, G., Cumming, D., Günther, C., Schweizer, D.: Signaling in equity crowdfunding. Entrepreneurship Theory Pract. 39(4), 955–980 (2015)CrossRefGoogle Scholar
  2. 2.
    Babbage, C.: On the Economy of Machinery and Manufactures. Lnd. Knight (1831)Google Scholar
  3. 3.
    Beaulieu, T., Saker, S.: A conceptual framework for understanding crowdfunding. Commun. Assoc. Inf. Syst. 37, 1–31 (2015)Google Scholar
  4. 4.
    Bechter, C., Jentzsch, S.M.: From wisdom of the crowd to crowdfunding. J. Commun. Comput. 9(1), 951–957 (2011)Google Scholar
  5. 5.
    Bellefamme, P.T.: Crowdfunding: tapping the right crowd. J. Bus. Ventur. 29(5), 585–609 (2014)CrossRefGoogle Scholar
  6. 6.
    Bradford, S.: Crowdfunding and the federal securities laws. Columbia Bus. Law Rev. 24(4), 1–150 (2012)Google Scholar
  7. 7.
    Brettel, M.: Business angels in Germany: a research note. Int. J. Entrepreneurial Finan., 251–268 (2010)Google Scholar
  8. 8.
    Busse, F.-J.: Grundlagen der betrieblichen Finanzwirtschaft, 5th edn. Oldenbourg, München (2003)CrossRefGoogle Scholar
  9. 9.
    Busse, V.: Crowdfunding - an empirical study on the entrepreneurial viewpoint. In: Fatos, X., Barolli, L., Gregus, M. (eds.) Advances in Intelligent Networking and Collaborative Systems: The 10th International Conference on Intelligent Networking and Collaborative Systems, pp. 306–318 (2018)Google Scholar
  10. 10.
    Cassar, G.: The financing of business start-ups. J. Bus. Ventur. 19(2), 261–283 (2004)CrossRefGoogle Scholar
  11. 11.
    Castelfranchi, C., Falcone, R.: Principles of Trust, pp. 55–99. Kluwer (2001)Google Scholar
  12. 12.
    Catalini, C., Fazio, C., Murray, F.: Can equity crowdfunding democratize. Innov. Sci. Rep., 1–16 (2016)Google Scholar
  13. 13.
    Cumming, D., Zhang, M.: Angel Investors Around the World. Elsevier, Amsterdam (2016)CrossRefGoogle Scholar
  14. 14.
    Denis, D.: Entrepreneurial finance: an overview of the issues and evidence. J. Corp. Finan. 10, 301–326 (2004)CrossRefGoogle Scholar
  15. 15.
    Duoqi, X., Mingyu, G.E.: Equity-based crowdfuning in China: beginning with the first crowdfunding financing case. Asian J. Law Soc. 4, 81–107 (2017)CrossRefGoogle Scholar
  16. 16.
    Gerber, E., Hui, J.: Crowdfunding: motivations and derterrents for participation. ACM Trans. Comput.-Hum. Interact. 20, 1–32 (2013)CrossRefGoogle Scholar
  17. 17.
    Gobble, M.: Everyone is a venture capitalist. Res. Technol. Manag. 55, 4 (2012)CrossRefGoogle Scholar
  18. 18.
    Gompers, P.: Optimal investment, monitoring, and the staging of venture capital. J. Finan. 50, 1461–1489 (1995)CrossRefGoogle Scholar
  19. 19.
    Gompers, P., Gornall, W., Klaplan, S., Strbulaev, I.: How do venture capitalists make decisions. SSRN Electron. J. (2016)Google Scholar
  20. 20.
    Hoegen, A., Steininger, D.V.: How do investors decide? An interdisciplinary review of decision-making in crowdfunding. Electron. Markets 28, 339–365 (2018)CrossRefGoogle Scholar
  21. 21.
    Kaczor, S., Kryvinska, N.: It is all about services - fundamentals, drivers, and business models. Soc. Serv. Sci. J. Serv. Sci. Res. 5(2), 125–154 (2013)CrossRefGoogle Scholar
  22. 22.
    Kryvinska, N.: Building consistent formal specification for the service enterprise agility foundation. Soc. Serv. Sci. J. Serv. Sci. Res. 4(2), 235–269 (2012)CrossRefGoogle Scholar
  23. 23.
    Kryvinska, N., Auer, L., Strauss, C.: The place and value of SOA in building 2.0-generation enterprise unified vs. ubiquitous communication and collaboration platform. In: Mauri, J.L., Meloche, J.A., Balandin, S., Ibrohimova, M., Nakata, J. (eds.) The Third International Conference on Mobile Ubiquitous Computing, Systems, Services and Technologies. IEEE Press, Piscataway, pp. 305–310 (2009).  https://doi.org/10.1109/ubicomm.2009.52
  24. 24.
    Kryvinska, N., Strauss, C., Zinterhof, P.: Migration strategies, planning methodologies, architectural design principles. In: Xhafa, N.B. (ed.) Next Generation Service Delivery Network as Enabler of Applicable Intelligence in Decision and Management Support Systems, pp. 473–502. Springer, Berlin (2011)Google Scholar
  25. 25.
    Lee, S., Persson, P.: Financing from family and friends. Rev. Finan. Stud. 29, 2341–2386 (2016)CrossRefGoogle Scholar
  26. 26.
    Li, Y., Rakesh, Reddy: Project success predicting crowdfunding. In: The ACM Guide to Computing Literature (2016)Google Scholar
  27. 27.
    McKaskill, T.: Raising Angel and Venture Capital Finance. Breakthrough Publications, Melbourne (2009)Google Scholar
  28. 28.
    Mladenow, A., Bauer, C., Strauss, C., Gregus, M.: Collaboration and locality in crowdsourcing. In: 7th International Conference on Intelligent Networking and Collaborative Systems (INCoS 2015), 2–4 September 2015, Taipei, Taiwan (2015).  https://doi.org/10.1109/incos.2015.74
  29. 29.
    Mollick, E.: The dynamics of crowdfuning: an exploratory study. J. Bus. Ventur. 29, 1–16 (2014)CrossRefGoogle Scholar
  30. 30.
    Moritz, A., Block, J., Lutz, E.: Investor communication in equity-based crowdfuning: a qualitative empirical study. Qual. Res. Finan. Mark. 7, 309–342 (2015)CrossRefGoogle Scholar
  31. 31.
    n.d. (22 März 2019). Kickstarter. Von https://www.kickstarter.com abgerufen
  32. 32.
    n.d. (22 März 2019). IndieGoGo. Von https://www.indiegogo.com abgerufen
  33. 33.
    Naudé, P., Sutton-Brady, C.: Relationships and networks as examined in Industrial Marketing Management. Ind. Mark. Manag. 79, 27–35 (2019)CrossRefGoogle Scholar
  34. 34.
    O’Conner, J., Robertson, E.: Longitude and academie royale. In: Mac Tutor History of Mathematics (1997)Google Scholar
  35. 35.
    Paschen, J.: Choose wisely: Crowdfunding through the stages of the startup life cycle. Bus. Horiz. 60, 179–188 (2017)CrossRefGoogle Scholar
  36. 36.
    Pavlou, P., Gefen, D.: Building effective online marketplaces with institution-based trust. Inf. Syst. Res. 15, 37–59 (2004)CrossRefGoogle Scholar
  37. 37.
    Peisl, T., Raeside, R., Busse, V.: Predictive crowding: the role of trust in crowd selection. In: 3E Conference Ireland, pp. 1–19 (2017)Google Scholar
  38. 38.
    Poets, M., Schreier, M.: The value of crowdsourcing: can user really compete with professionals in generating new product ideas? J. Prod. Innov. Manag. 29, 245–256 (2012)CrossRefGoogle Scholar
  39. 39.
    Rossi, M., Thrassou, A., Vronits, D.: Open Innovation Systems and New Forms of Investment: Venture Capital’s Role in Innovation. Cambridge Scholar Publishing, Newcastle upon Tyne (2013)Google Scholar
  40. 40.
    Schwienbacher, A., Laaralde, B.: Crowdfunding of Small Entrepreneurial Ventures. Oxford University Press, Oxford (2010)CrossRefGoogle Scholar
  41. 41.
    Shirky, C.: Clay shirky talks JOBS act and the new business ecosystem (2012). (E. Blattberg, Interviewer)Google Scholar
  42. 42.
    Sickinger, M.D.: Überblick zu Börsensegmenten, Zugangsvoraussetzungen und Folgepflichten. Münchner Kapitalmarkt Konfernez. Heuking Kühn Wojtek, München (2017)Google Scholar
  43. 43.
    Sigar, K.: Fret no more: inapplicability of crowdfunding concerns the internet age and the JOBS Act’s safeguards. Adm. Law Rev. 64, 474–505 (2012)Google Scholar
  44. 44.
    Sullivan, B., Ma, S.: Crowdfunding: Potential Legal Disaster Waiting to Happen, pp. 474–505. Forbes (2012)Google Scholar
  45. 45.
    Valanciene, L., Jegeleviciute, S.: Valuation of crowdfuning: benefits and drawbacks. Econ. Manag. 18, 39–48 (2013)CrossRefGoogle Scholar
  46. 46.
    Vinturella, J., Erickson, S.: Raising Entrepreneurial Capital. Elsevier, Amsterdam (2013)Google Scholar
  47. 47.
    Wong, A.: Angel finance: the other venture capital. SSRN Electron. Bus., 1–66 (2002)Google Scholar

Copyright information

© Springer Nature Switzerland AG 2020

Authors and Affiliations

  1. 1.University of ViennaViennaAustria
  2. 2.Faculty of ManagementComenius UniversityBratislavaSlovakia

Personalised recommendations