Crowdfunding

Crowdfunding is the practice of funding a project or venture by raising small amounts of money from a large number of people, typically via the Internet.[1][2] Crowdfunding is a form of crowdsourcing and alternative finance. In 2015, over US$34 billion was raised worldwide by crowdfunding.[3]

Although similar concepts can also be executed through mail-order subscriptions, benefit events, and other methods, the term crowdfunding refers to Internet-mediated registries.[4] This modern crowdfunding model is generally based on three types of actors: the project initiator who proposes the idea or project to be funded, individuals or groups who support the idea, and a moderating organization (the "platform") that brings the parties together to launch the idea.[5]

Crowdfunding has been used to fund a wide range of for-profit, entrepreneurial ventures such as artistic and creative projects, medical expenses, travel, and community-oriented social entrepreneurship projects.[6] Its use has also been criticised for funding quackery, especially costly and fraudulent cancer treatments.[7][8][9][10]

History
A printed receipt 135 x 97 mm issued between 1850 and 1857 to support the French philosopher Auguste Comte[11]

Crowdfunding has a long history with several roots. Books have been crowdfunded for centuries: authors and publishers would advertise book projects in praenumeration or subscription schemes. The book would be written and published if enough subscribers signaled their readiness to buy the book once it was out. The subscription business model is not exactly crowdfunding, since the actual flow of money only begins with the arrival of the product. The list of subscribers has, though, the power to create the necessary confidence among investors that is needed to risk the publication.[12]

War bonds are theoretically a form of crowdfunding military conflicts. London's mercantile community saved the Bank of England in the 1730s when customers demanded their pounds to be converted into gold - they supported the currency until confidence in the pound was restored, thus crowdfunded their own money. A clearer case of modern crowdfunding is Auguste Comte's scheme to issue notes for the public support of his further work as a philosopher. The "Première Circulaire Annuelle adressée par l'auteur du Système de Philosophie Positive" was published on 14 March 1850, and several of these notes, blank and with sums have survived.[13] The cooperative movement of the 19th and 20th centuries is a broader precursor. It generated collective groups, such as community or interest-based groups, pooling subscribed funds to develop new concepts, products, and means of distribution and production, particularly in rural areas of Western Europe and North America. In 1885, when government sources failed to provide funding to build a monumental base for the Statue of Liberty, a newspaper-led campaign attracted small donations from 160,000 donors.[12]

Crowdfunding on the internet first gained popular and mainstream use in the arts and music communities.[14] The first noteworthy instance of online crowdfunding in the music industry was in 1997, when fans of the British rock band Marillion raised US$60,000 in donations by means of an Internet campaign to underwrite an entire U.S. tour. The band subsequently used this method to fund their studio albums.[15][16][17] This built on the success of crowdfunding via magazines, such as the 1992 campaign by the Vegan Society that crowdfunded the production of the "Truth or Dairy" video documentary.[18] In the film industry, independent writer/director Mark Tapio Kines designed a website in 1997 for his then-unfinished first feature film Foreign Correspondents. By early 1999, he had raised more than US$125,000 on the Internet from at least 25 fans, providing him with the funds to complete his film.[19] In 2002, the "Free Blender" campaign was an early software crowdfunding precursor.[20][21] The campaign aimed for open-sourcing the Blender 3D computer graphics software by collecting €100,000 from the community while offering additional benefits for donating members.[22][23]

The first company to engage in this business model was the U.S. website ArtistShare (2001).[24][25][26] As the model matured, more crowdfunding sites started to appear on the web such as Kiva (2005), IndieGoGo (2008), Kickstarter (2009), GoFundMe (2010), Microventures (2010), and YouCaring (2011).[27][28]

The phenomenon of crowdfunding is older than the term "crowdfunding". According to wordspy.com, the earliest recorded use of the word was in August 2006.[29]

Types

The Crowdfunding Centre's May 2014 report identified two primary types of crowdfunding:

  1. Rewards crowdfunding: entrepreneurs presell a product or service to launch a business concept without incurring debt or sacrificing equity/shares.
  2. Equity crowdfunding: the backer receives shares of a company, usually in its early stages, in exchange for the money pledged.[30]

Reward-based

Reward-based crowdfunding has been used for a wide range of purposes, including motion picture promotion,[31] free software development, inventions development, scientific research,[32] and civic projects.[33]

Many characteristics of rewards-based crowdfunding, also called non-equity crowdfunding, have been identified by research studies. In rewards-based crowdfunding, funding does not rely on location. The distance between creators and investors on Sellaband was about 3,000 miles when the platform introduced royalty sharing. The funding for these projects is distributed unevenly, with a few projects accounting for the majority of overall funding. Additionally, funding increases as a project nears its goal, encouraging what is called "herding behavior". Research also shows that friends and family account for a large, or even majority, portion of early fundraising. This capital may encourage subsequent funders to invest in the project. While funding does not depend on location, observation shows that funding is largely tied to the locations of traditional financing options. In reward-based crowdfunding, funders are often too hopeful about project returns and must revise expectations when returns are not met.[14]

Equity

Equity crowdfunding is the collective effort of individuals to support efforts initiated by other people or organizations through the provision of finance in the form of equity.[34] In the United States, legislation that is mentioned in the 2012 JOBS Act will allow for a wider pool of small investors with fewer restrictions following the implementation of the act.[35] Unlike nonequity crowdfunding, equity crowdfunding contains heightened "information asymmetries". The creator must not only produce the product for which they are raising capital, but also create equity through the construction of a company.[14] Equity crowdfunding, unlike donation and rewards-based crowdfunding, involves the offer of securities which include the potential for a return on investment. Syndicates, which involve many investors following the strategy of a single lead investor, can be effective in reducing information asymmetry and in avoiding the outcome of market failure associated with equity crowdfunding.[36]

Software value token

Another kind of crowdfunding is to raise funds for a project where a digital or software-based value token is offered as a reward to funders which is known as Initial coin offering (abbreviated to ICO). Value tokens are endogenously created by particular open decentralized networks that are used to incentivize client computers of the network to expend scarce computer resources on maintaining the protocol network. These value tokens may or may not exist at the time of the crowdsale, and may require substantial development effort and eventual software release before the token is live and establishes a market value. Although funds may be raised simply for the value token itself, funds raised on blockchain-based crowdfunding can also represent equity, bonds, or even "market-maker seats of governance" for the entity being funded.[37] Examples of such crowdsales are Augur decentralized, distributed prediction market software which raised US$4 million from more than 3500 participants;[37] Ethereum blockchain; and "The DAO."[38][39][40][41]

Debt-based
See also: Peer-to-peer lending

Debt-based crowdfunding, (also known as "peer to peer", "P2P", "marketplace lending", or "crowdlending") arose with the founding of Zopa in the UK in 2005[42] and in the US in 2006, with the launches of Lending Club and Prosper.com.[43] Borrowers apply online, generally for free, and their application is reviewed and verified by an automated system, which also determines the borrower's credit risk and interest rate. Investors buy securities in a fund which makes the loans to individual borrowers or bundles of borrowers. Investors make money from interest on the unsecured loans; the system operators make money by taking a percentage of the loan and a loan servicing fee.[43] In 2009, institutional investors entered the P2P lending arena; for example in 2013, Google invested $125 million in Lending Club.[43] In 2014 in the US, P2P lending totalled about $5 billion.[44] In 2014 in the UK, P2P platforms lent businesses £749 million, a growth of 250% from 2012 to 2014, and lent retail customers £547 million, a growth of 108% from 2012 to 2014.[45]:23 In both countries in 2014, about 75% of all the money transferred through crowdfunding went through P2P platforms.[44] Lending Club went public in December 2014 at a valuation around $9 billion.[43]

Litigation

Litigation crowdfunding allows plaintiffs or defendants to reach out to hundreds of their peers simultaneously in a semiprivate and confidential manner to obtain funding, either seeking donations or providing a reward in return for funding. It also allows investors to purchase a stake in a claim they have funded, which may allow them to get back more than their investment if the case succeeds (the reward is based on the compensation received by the litigant at the end of his or her case, known as a contingent fee in the United States, a success fee in the United Kingdom, or a pactum de quota litis in many civil law systems).[46] LexShares is a platform that allows accredited investors to invest in lawsuits.[47]

Donation-based

Running alongside reward-based crowdfunding, donation-based is second as the most commonly used form of crowdfunding. Donation-based crowdfunding is the collective effort of individuals to help charitable causes.[48] In donation-based crowdfunding, funds are raised for religious, social environmental, or other purposes.[49] Donors come together to create an online community around a common cause to help fund services and programs to combat a variety of issues including healthcare[50] and community development.[51] The major aspect of donor-based crowdfunding is that there is no reward for donating; rather, it is based on the donor's altruistic reasoning.[52] Ethical concerns have been raised to the increasing popularity of donation-based crowdfunding, which can be affected by fraudulent campaigns and privacy issues.[53]

Role

The inputs of the individuals in the crowd trigger the crowdfunding process and influence the ultimate value of the offerings or outcomes of the process. Each individual acts as an agent of the offering, selecting and promoting the projects in which they believe. They sometimes play a donor role oriented towards providing help on social projects. In some cases, they become shareholders and contribute to the development and growth of the offering. Individuals disseminate information about projects they support in their online communities, generating further support (promoters).

Motivation for consumer participation stems from the feeling of being at least partly responsible for the success of others people’s initiatives (desire for patronage), striving to be a part of a communal social initiative (desire for social participation), and seeking a payoff from monetary contributions (desire for investment).[5] Additionally, individuals participate in crowdfunding to see new and innovative products before the public. Early access often allows funders to participate more directly in the development of the product. Crowdfunding is also particularly attractive to funders who are family and friends of a creator. It helps to mediate the terms of their financial agreement and manage each group's expectations for the project.[14]

An individual who takes part in crowdfunding initiatives tends to have several distinct traits: innovative orientation, which stimulates the desire to try new modes of interacting with firms and other consumers; social identification with the content, cause or project selected for funding, which sparks the desire to be a part of the initiative; (monetary) exploitation, which motivates the individual to participate by expecting a payoff.[5] Crowdfunding platforms are motivated to generate income by drawing worthwhile projects and generous funders. These sites also seek widespread public attention for their projects and platform.[14]

Crowdfunding websites helped companies and individuals worldwide raise US$89 million from members of the public in 2010, $1.47 billion in 2011, and $2.66 billion in 2012 — $1.6 billion of the 2012 amount was raised in North America.[54]

Crowdfunding is expected to reach US$1 trillion in 2025.[55] A May 2014 report, released by the United Kingdom-based The Crowdfunding Centre and titled "The State of the Crowdfunding Nation", presented data showing that during March 2014, more than US$60,000 were raised on an hourly basis via global crowdfunding initiatives. Also during this period, 442 crowdfunding campaigns were launched globally on a daily basis.[30]

Platforms
Further information: Comparison of crowdfunding services

In 2012, there were over 450 crowdfunding platforms operating.[56] In 2015, it was predicted that there would be over 2,000 crowdfunding sites to choose from in 2016.[57]

Fundamental differences exist in the services provided by many crowdfunding platforms.[5] For instance, CrowdCube and Seedrs are Internet platforms which enable small companies to issue shares over the Internet and receive small investments from registered users in return. While CrowdCube is meant for users to invest small amounts and acquire shares directly in start-up companies, Seedrs pools the funds to invest in new businesses, as a nominated agent.[58]

Curated crowdfunding platforms serve as "network orchestrators" by curating the offerings that are allowed on the platform. They create the necessary organizational systems and conditions for resource integration among other players to take place.[5] Relational mediators act as an intermediary between supply and demand. They replace traditional intermediaries (such as traditional record companies, venture capitalists). These platforms link new artists, designers, project initiators with committed supporters who believe in the persons behind the projects strongly enough to provide monetary support. Growth engines focus on the strong inclusion of investors. They "disintermediate" by eliminating the activity of a service provider previously involved in the network. The platforms that use crowdfunding to seek stakes from a community of high net-worth private investors and match them directly with project initiators.

Significant campaigns

Early campaigns

Marillion started crowdfunding in 1997. Fans of the British rock band raised $60,000 (£39,000) via the internet to help finance a North American tour.[59][60] The Professional Contractors Group, a trade body representing freelancers in the UK, raised £100,000 over a two-week period in 1999[61] from some 2000 freelancers threatened by a Government measure known as IR35. In 2003, jazz composer Maria Schneider (musician) launched the first crowdfunding campaign on ArtistShare for a new recording.[62] The recording was funded by her fans and became the first recording in history to win a Grammy Award without being available in retail stores.

In 2004, Electric Eel Shock, a Japanese rock band, raised £10,000 from 100 fans (the Samurai 100) by offering them a lifetime membership on the band's guestlist.[63] Two years later, they became the fastest band to raise a US$50,000 budget on SellaBand.[64] Franny Armstrong later created a donation system for her feature film The Age of Stupid.[65] Over five years, from June 2004 to June 2009 (release date), she raised £1,500,000.[66] In December 2004, French entrepreneurs and producers Benjamin Pommeraud and Guillaume Colboc, launched a public Internet donation campaign [67] to fund their short science fiction film, Demain la Veille (Waiting for Yesterday). Within a month, they managed to raise €17,000 online, allowing them to shoot their film.

Highest-grossing campaigns

As of late 2019 the highest reported funding by a crowdfunded project to date is Star Citizen, an online space trading and combat video game being developed by Chris Roberts and Cloud Imperium Games; it has raised over $254M to date, and while it has a devoted fan base criticism has arisen for being a potential scam.[68]

Kickstarter campaigns

On April 17, 2014, the Guardian media outlet published a list of "20 of the most significant projects" launched on the Kickstarter platform prior to the date of publication[69], including: Musician Amanda Palmer raised US$1.2 million from 24,883 backers in June 2012 to make a new album and art book.[70]

Other campaigns include:

  • The "Coolest Cooler" raised a total of $13,285,226 from 62,642 backers in July 2014.[71] The cooler features a blender, waterproof Bluetooth speakers and an LED light.
  • Zack Brown raised $55,000 from over 6,900 backers in September 2014 to make a bowl of potato salad. Noteworthy is that his initial goal was only $10, but his campaign went viral and got a lot of attention. Brown ended up throwing a potato salad party with over 3,000 pounds of potatoes.[72]

Kickstarter has been used to successfully revive or launch television and film projects that could not get funding elsewhere.[73] These are the current record holders for projects in the "film" category:

  1. Critical Role raised a total of $11,385,449 with 88,887 backers in April 2019 to make an animated TV show based on their Twitch live-streamed Dungeons & Dragons game. Not only did the campaign exceed the $750,000 goal but the campaign also broke the Kickstarter record for most money raised for projects in the "film" category.[74]
  2. Mystery Science Theater 3000 raised a total of $5,764,229 with 48,270 backers in December 2015 to create fourteen episodes of the new series, including a holiday special.[75][76]
  3. Veronica Mars raised a total of $5,702,153 with 91,585 backers in March 2013 to create a film set nine years after the end of the TV show. In the campaign's first 12 hours of existence, it became the fastest Kickstarter campaign to reach both $1 million and $2 million and it held onto the record of highest in the "film" category until Mystery Science Theater 3000 beat it in 2015.[73][76]

Applications

Crowdfunding is being explored as a potential funding mechanism for creative work such as blogging and journalism,[77] music, independent film (see crowdfunded film),[78][79] and for funding startup companies.[80][81][82][83]

Community music labels are usually for-profit organizations where "fans assume the traditional financier role of a record label for artists they believe in by funding the recording process".[84] Since pioneering crowdfunding in the film industry, Spanner Films has published a "how to" guide.[85] A Financialist article published in mid-September 2013 stated that "the niche for crowdfunding exists in financing films with budgets in the [US]$1 to $10 million range" and crowdfunding campaigns are "much more likely to be successful if they tap into a significant pre-existing fan base and fulfill an existing gap in the market."[86] Innovative new platforms, such as RocketHub, have emerged that combine traditional funding for creative work with branded crowdsourcing—helping artists and entrepreneurs unite with brands "without the need for a middle man."[87]

Philanthropy and civic projects

A variety of crowdfunding platforms have emerged to allow ordinary web users to support specific philanthropic projects without the need for large amounts of money.[33] GlobalGiving allows individuals to browse through a selection of small projects proposed by nonprofit organizations worldwide, donating funds to projects of their choice. Microcredit crowdfunding platforms such as Kiva (organization) facilitate crowdfunding of loans managed by microcredit organizations in developing countries. The US-based nonprofit Zidisha applies a direct person-to-person lending model to microcredit lending for low-income small business owners in developing countries.[88] In 2017, Facebook initiated "Fundraisers", an internal plug-in function that allows its users to raise money for nonprofits.[89]

DonorsChoose.org, founded in 2000, allows public school teachers in the United States to request materials for their classrooms. Individuals can lend money to teacher-proposed projects, and the organization fulfills and delivers supplies to schools. There are also a number of own-branded university crowdfunding websites, which enable students and staff to create projects and receive funding from alumni of the university or the general public. Several dedicated civic crowdfunding platforms have emerged in the US and the UK, some of which have led to the first direct involvement of governments in crowdfunding. In the UK, Spacehive is used by the Mayor of London and Manchester City Council to co-fund civic projects created by citizens.[90] Similarly, dedicated humanitarian crowdfunding initiatives are emerging, involving humanitarian organizations, volunteers and supports in solving and modeling how to build innovative crowdfunding solutions for the humanitarian community. Likewise, international organizations like the Office for the Coordination of Humanitarian Affairs (OCHA) have been researching and publishing about the topic.[91]

One crowdfunding project, iCancer, was used to support a Phase 1 trial of AdVince, an anti-cancer drug in 2016.[92][93]

Research into the suitability of crowdfunding for civic investment in the UK highlights that the public sector has not fully realised the benefits of a crowdfunding approach[94].

Real estate

Real estate crowdfunding is the online pooling of capital from investors to fund mortgages secured by real estate, such as "fix and flip" redevelopment of distressed or abandoned properties, equity for commercial and residential projects, acquisition of pools of distressed mortgages, home buyer downpayments and similar real estate related outlets. Investment, via specialised online platforms in the US, is generally completed under Title II of the JOBS Act and is limited to accredited investors. The platforms offer low minimum investments, often $100 – $10,000.[95][96] There are over 75 real estate crowdfunding platforms in the United States.[97] The growth of real estate crowdfunding is a global tendency. During 2014 and 2015, more than 150 platforms have been created throughout the world, such as in China, the Middle East, or France. In Europe, some compare this growing industry to that of e-commerce ten years ago.[98]

In Europe the requirements towards investors are not as high as in the United States, lowering the entry barrier into the real estate investments in general.[99] Real estate crowdfunding can include various project types from commercial to residential developments, planning gain opportunities, build to hold (such as social housing) and many more. The report from Cambridge Centre for Alternative Finance addresses both real estate crowdfunding and peer 2 peer lending (property) in the UK.[100]

Largest real estate crowdfunding platforms in continental Europe are Housers and EstateGuru. Baltic States could be classified as one of the most active property crowdfunding markets and Estonia provides one of the highest returns to investors in Europe. Another Estonian platform EVOEstate provides highest diversification opportunities and records up to 18% annual returns to its investors.

Intellectual property exposure

One of the challenges of posting new ideas on crowdfunding sites is there may be little or no intellectual property (IP) protection provided by the sites themselves. Once an idea is posted, it can be copied. As Slava Rubin, founder of IndieGoGo, said: "We get asked that all the time, 'How do you protect me from someone stealing my idea?' We're not liable for any of that stuff."[101] Inventor advocates, such as Simon Brown, founder of the UK-based United Innovation Association, counsel that ideas can be protected on crowdfunding sites through early filing of patent applications, use of copyright and trademark protection as well as a new form of idea protection supported by the World Intellectual Property Organization called Creative Barcode.[102]

Science

A number of platforms have also emerged that specialize in the crowdfunding of scientific projects, such as experiment.com, and The Open Source Science Project.[103] In the scientific community, these new options for research funding are seen ambivalently. Advocates of crowdfunding for science emphasize that it allows early-career scientists to apply for their own projects early on, that it forces scientists to communicate clearly and comprehensively to a broader public, that it may alleviate problems of the established funding systems which are seen to fund conventional, mainstream projects, and that it gives the public a say in science funding.[104] In turn, critics are worried about quality control on crowdfunding platforms. If non-scientists were allowed to make funding decisions, it would be more likely that "panda bear science" is funded, i.e. research with broad appeal but lacking scientific substance.[105]

Initial studies found that crowdfunding is used within science, mostly by young researchers to fund small parts of their projects, and with high success rates. At the same time, funding success seems to be strongly influenced by non-scientific factors like humor, visualizations, or the ease and security of payment.[106]

Journalism

In order to fund online and print publications, journalists are enlisting the help of crowdfunding. Crowdfunding allows for small start-ups and individual journalists to fund their work without the institutional help of major public broadcasters. Stories are publicly pitched using crowdfunding platforms such as Kickstarter, Indiegogo, or Spot.us. The funds collected from crowdsourcing may be put toward travel expenses or purchasing equipment. Crowdfunding in journalism may also be viewed as a way to allow audiences to participate in news production and in creating a participatory culture.[107] Though deciding which stories are published is a role that traditionally belongs to editors at more established publications, crowdfunding can give the public an opportunity to provide input in deciding which stories are reported. This is done by funding certain reporters and their pitches. Donating can be seen as an act that "bonds" reporters and their readers. This is because readers are expressing interest for their work, which can be "personally motivating" or "gratifying" for reporters.[108]

Spot.us, which was closed in February 2015, was a crowdfunding platform that was specifically meant for journalism.[107][109] The website allowed for readers, individual donors, registered Spot.us reporters, or news organizations to fund or donate talent toward a pitch of their choosing. While funders are not normally involved in editorial control, Spot.us allowed for donors or "community members" to become involved with the co-creation of a story. This gave them the ability to edit articles, submit photographs, or share leads and information.[108] According to an analysis by Public Insight Network, Spot.us was not sustainable for various reasons. Many contributors were not returning donors and often, projects were funded by family and friends. The overall market for crowdfunding journalism may also be a factor; donations for journalism projects accounted for .13 percent of the $2.8 billion that was raised in 2013.[110]

Larger crowdfunding platforms such as Indiegogo or Kickstarter, both of which are not journalism-specific, may garner more success for projects. This is because these large-scale platforms can allow journalists to reach new audiences. In 2017, 2.3 million out of Kickstarter's 7.9 million users had donated toward more than one project.

Traditionally, journalists are not involved in advertising and marketing. Crowdfunding means that journalists are attracting funders while trying to remain independent, which may pose a conflict. Therefore, being directly involved with financial aspects can call journalistic integrity and journalistic objectivity into question. This is also due to the fact that journalists may feel some pressure or "a sense of responsibility" toward funders who support a particular project.[107] Crowdfunding can also allow for a blurred line between professional and non-professional journalism because if enough interest is generated, anyone may have their work published.[111] Crowdfunding enables freelancer journalists to travel to the sites to find the new sources.[107]

International development

There is some hope that crowdfunding has potential as a tool open for use by groups of people traditionally more marginalized. The World Bank published a report titled "Crowdfunding's potential for the Developing World" which states that "While crowdfunding is still largely a developed world phenomenon, with the support of governments and development organizations it could become a useful tool in the developing world as well. Substantial reservoirs of entrepreneurial talent, activity, and capital lay dormant in many emerging economies...Crowdfunding and crowdfund investing have several important roles to play in the developing world's entrepreneurial and venture finance ecosystem."[112]

As the popularity of crowdfunding expanded, the SEC, state governments, and Congress responded by enacting and refining many capital-raising exemptions to allow easier access to alternative funding sources. Initially, the Securities Act of 1933 banned companies from soliciting capital from the general public for private offerings. However, "President Obama signed the Jumpstart Our Small Businesses Act ("JOBS Act") into law on April 5, 2012, which removed the ban on general solicitation activities for issuers qualifying under a new exemption called 'Rule 506(c).'" A company can now broadly solicit and generally advertise an offering and still be compliant with the exemption's requirements if:

  • The investors in the offering are all accredited investors; and
  • The company takes reasonable steps to verify that the investors are accredited investors, which could include reviewing documentation, such as W-2s, tax returns, bank and brokerage statements, credit reports and the like.[113]

Another change was the amendment of SEC Rule 147. Section 3(a)(11) of the Securities Act allows for unlimited capital raising from investors in a single state through an intrastate exemption. However, the SEC created Rule 147 with a number of requirements to ensure compliance. For example, intrastate solicitation was allowed, but a single out-of-state offer could destroy the exemption. Additionally, the issuer was required to be incorporated and do business in the same state of the intrastate offering. With the expansion of interstate business activities because of the internet, it became difficult for businesses to comply with the exemption. Therefore, on October 26, 2016 the SEC adopted Rule 147(a) which removed many of the restrictions to modernize the Rules. For example, companies would have to do business and have its principal place of business in the state where the offering is sold, and not necessarily where offered per the prior rule.[114]

Benefits and risks

Benefits for the creator

Crowdfunding campaigns provide producers with a number of benefits, beyond the strict financial gains.[115] The following are non financial benefits of crowdfunding.

  • Profile – a compelling project can raise a producer's profile and provide a boost to their reputation.
  • Marketing – project initiators can show there are an audience and market for their project. In the case of an unsuccessful campaign, it provides good market feedback.
  • Audience engagement – crowdfunding creates a forum where project initiators can engage with their audiences. An audience can engage in the production process by the following progress through updates from the creators and sharing feedback via comment features on the project's crowdfunding page.
  • Feedback – offering pre-release access to content or the opportunity to beta-test content to project backers as a part of the funding incentives provides the project initiators with instant access to good market testing feedback.

There are also financial benefits to the creator. For one, crowdfunding allows creators to attain low-cost capital. Traditionally, a creator would need to look at "personal savings, home equity loans, personal credit cards, friends and family members, angel investors, and venture capitalists." With crowdfunding, creators can find funders from around the world, sell both their product and equity, and benefit from increased information flow. Additionally, crowdfunding that supports pre-buying allows creators to obtain early feedback on the product.[14] Another potential positive effect is the propensity of groups to "produce an accurate aggregate prediction" about market outcomes as identified by author James Surowiecki in his book The Wisdom of Crowds, thereby placing financial backing behind ventures likely to succeed.

Proponents also identify a potential outcome of crowdfunding as an exponential increase in available venture capital. One report claims that if every American family gave one percent of their investable assets to crowdfunding, $300 billion (a 10X increase) would come into venture capital.[116] Proponents also cite that a benefit for companies receiving crowdfunding support is that they retain control of their operations, as voting rights are not conveyed along with ownership when crowdfunding. As part of his response to the Amanda Palmer Kickstarter controversy, Albini expressed his supportive views of crowdfunding for musicians, explaining: "I've said many times that I think they're part of the new way bands and their audience interact and they can be a fantastic resource, enabling bands to do things essentially in cooperation with their audience." Albini described the concept of crowdfunding as "pretty amazing."[117]

Risks and barriers for the creator

Crowdfunding also comes with a number of potential risks or barriers.[118] For the creator, as well as the investor, studies show that crowdfunding contains "high levels of risk, uncertainty, and information asymmetry."[14]

  • Reputation – failure to meet campaign goals or to generate interest results in a public failure. Reaching financial goals and successfully gathering substantial public support but being unable to deliver on a project for some reason can severely negatively impact one's reputation.
  • Intellectual property (IP) protection – many Interactive Digital Media developers and content producers are reluctant to publicly announce the details of a project before production due to concerns about idea theft and protecting their IP from plagiarism.[118] Creators who engage in crowdfunding are required to release their product to the public in early stages of funding and development, exposing themselves to the risk of copy by competitors.[14]
  • Donor exhaustion – there is a risk that if the same network of supporters is reached out to multiple times, that network will eventually cease to supply necessary support.
  • Public fear of abuse – concern among supporters that without a regulatory framework, the likelihood of a scam or an abuse of funds is high. The concern may become a barrier to public engagement.
  • Lack of participation - It is seen that some stories are more likely to get picked up than others based on the story. It is easy to get support if you "just tell a story."[119]

For crowdfunding of equity stock purchases, there is some research in social psychology that indicates that, like in all investments, people don't always do their due diligence to determine if it is a sound investment before investing, which leads to making investment decisions based on emotion rather than financial logic.[120] By using crowdfunding, creators also forgo potential support and value that a single angel investor or venture capitalist might offer. Likewise, crowdfunding requires that creators manage their investors. This can be time-consuming and financially burdensome as the number of investors in the crowd rises.[14] Crowdfunding draws a crowd: investors and other interested observers who follow the progress, or lack of progress, of a project. Sometimes it proves easier to raise the money for a project than to make the project a success. Managing communications with many possibly disappointed investors and supporters can be a substantial, and potentially diverting, task.[121]

Some of the most popular fundraising drives are for commercial companies which use the process to reach customers and at the same time market their products and services. This favors companies like microbreweries and specialist restaurants – in effect creating a "club" of people who are customers as well as investors. In the USA in 2015, new rules from the SEC to regulate equity crowdfunding will mean that larger businesses with more than 500 investors and more than $25 million in assets will have to file reports like a public company. The Wall Street Journal commented: "It is all the pain of an IPO without the benefits of the IPO."[122] These two trends may mean crowdfunding is most suited to small consumer-facing companies rather than tech start-ups.

Benefits for the investor

There are several ways in which a well-regulated crowdfunding platform may provide the possibility of attractive returns for investors:

  • Crowdfunding reduces costs – The platforms reduce search costs and transaction costs, which allows higher participation in the market. Many individual investors would otherwise have a hard time to invest in early-stage companies because of the difficulty of identifying a company directly and the high costs of joining an Angel Group or doing it through a professional venture capital firm.
  • Current early stage investing is not efficient – Venture capital firms often neglect the consumer sector and focus mainly on high-tech companies. Crowdfunding opens up some of these neglected markets to individual investors. Crowdfunding doesn't make sense in every industry, but for some, like retail and consumer, it does.
  • Value of new investors – Investors can add value to companies when they act as brand advocates and they can even be used as a focus group. Crowdfunding allows individual investors to be a part of the company they invest in.[123]

Risks for the investor

On crowdfunding platforms, the problem of information asymmetry is exacerbated due to the reduced ability of the investor to conduct due diligence.[36] Early-stage investing is typically localized, as the costs of conducting due diligence before making investment decisions and the costs of monitoring after investing both rise with distance. However, this trend is not observed on crowdfunding platforms - these platforms are not geographically constrained and bring in investors from near and far.[35][124] On non-equity or reward-based platforms, investors try to mitigate this risk by using the amount of capital raised as a signal of performance or quality. On equity-based platforms, crowdfunding syndicates reduce information asymmetry through dual channels – through portfolio diversification and better due diligence as in the case of offline early-stage investing, but also by allowing lead investors with more information and better networks to lead crowds of backers to make investment decisions.[36][125]

Issues in medical crowdfunding

The rise of crowdfunding for medical expenses is considered, in large part, a symptom of an inadequate and failing healthcare system in countries such as the United States.[126][127] Healthcare, in this crowdfunding context, has become a measure of perceived deservingness and worth.[127]

Rob Solomon, the CEO of GoFundMe, has commented on this: "The system is terrible. It needs to be rethought and retooled. Politicians are failing us. Health care companies are failing us. Those are realities. I don't want to mince words here. We are facing a huge potential tragedy. We provide relief for a lot of people. But there are people who are not getting relief from us or from the institutions that are supposed to be there. We shouldn’t be the solution to a complex set of systemic problems."[128]

There are ethical issues in medical crowdfunding. There is a loss of patient privacy, as crowdfunding campaigns that disclose extensive personal information are generally more financially successful.[129] The oversight regarding the veracity of claims is generally limited.[129][130] For instance, physicians are obliged to uphold the ethics of the medical profession, such as patient confidentiality, but this runs in conflict with dishonest crowdfunding efforts.[130] Medical crowdfunding perpetuates inequalities—associated with variables such as gender, class, and race—in access to healthcare.[127][129] For example, the most successful campaigns raise funds for patients who are well connected in large social networks and are able to navigate the technological landscape.[129] Finally, the use of medical crowdfunding might reduce the impetus to reform failing infrastructures to healthcare.[129]

gollark: But it seems to be doing some incredibly cursed thing where it's regexing and evaluating a string.
gollark: It... seems like it's generating sound, in some way?
gollark: I mean, not `send` as much as some more general logic which happened to primarily cause breakage of that, but same principle.
gollark: <@!345300752975003649> It took *us* 40 minutes to do that too!
gollark: It did.

See also

References
  1. Goran Calic, "Crowdfunding", The SAGE Encyclopedia of the Internet, 2018
  2. "Definition of Crowdfunding". www.merriam-webster.com. Retrieved October 23, 2017.
  3. "Cambridge Judge Business School: Cambridge Centre for Alternative Finance". Jbs.cam.ac.uk. Retrieved July 24, 2015.
  4. "Oxford Dictionary Definition of Crowdfunding". Retrieved July 23, 2014.; The Merriam Webster Dictionary defines crowdfunding as "the practice of soliciting financial contributions from a large number of people especially from the online community" "Merriam Webster Dictionary Definition of Crowdfunding". Retrieved July 23, 2014.
  5. "Crowdfunding: Transforming Customers Into Investors Through Innovative Service Platforms" (PDF). Retrieved February 7, 2013.
  6. Gleasure, R., & Feller, J. (2016). Emerging technologies and the democratisation of financial services: A metatriangulation of crowdfunding research. Information and Organization, 26(4), 101-115.
  7. Cara, Ed. "Crowdfunding Sites Are Putting Money in the Pockets of Cancer Quacks, Report Finds". Gizmodo. Gizmodo. Retrieved December 10, 2018.
  8. Newman, Melanie (September 12, 2018). "Is cancer fundraising fuelling quackery?". BMJ. 362: k3829. doi:10.1136/bmj.k3829. ISSN 1756-1833.
  9. "Crowdfunding: The fuel for cancer quackery". Science-Based Medicine. September 17, 2018. Retrieved January 12, 2019.
  10. Mole, Beth (September 20, 2018). "Crowdfunding raises millions for quack cancer remedies, like coffee enemas". Ars Technica. Retrieved January 12, 2019.
  11. Olaf Simons (March 10, 2016). "Crowdsourcing Comte". positivists.org. Retrieved March 10, 2016.
  12. "The Statue of Liberty and America's crowdfunding pioneer". BBC Online. April 24, 2013. Retrieved April 28, 2013.
  13. Olaf Simons (March 11, 2016). "Crowdfunding Comte". positivists.org. Retrieved March 11, 2016.
  14. Agrawal, Ajay; Catalini, Christian; Goldfarb, Avi (June 2013). "Some Simple Economics of Crowdfunding". NBER Working Paper No. 19133. doi:10.3386/w19133.
  15. Golemis, Dean (September 23, 1997). "British Band's U.s. Tour Is Computer-generated". Chicago Tribune.
  16. Masters, Tim (November 5, 2011). "BBC News – Marillion 'understood where the internet was going early on'". Bbc.co.uk. Retrieved September 3, 2013.
  17. "BBC article, May 11, 2001". BBC News. May 11, 2001.
  18. "The Vegan Winter 1992". Issuu. Retrieved January 2, 2020.
  19. Andrew Rodgers (June 11, 1999). "Filmmaker Uses Web To Help Finance, Cast Movie". Chicago Tribune. Retrieved January 7, 2013.
  20. Blender Foundation Launches Campaign to Open Blender Source on linuxtoday (July 22, 2002)
  21. 'Free Blender Fund' campaign archived 2002
  22. Membership People can subscribe to become Foundation Member. Members who subscribe during the campaign period, get additional benefits for their support. During campaign: - Costs: minimum one time fee of 50 euros (or US$50) (archived 2002)
  23. Foundation, Blender. "FAQ". blender.org. Archived from the original on January 3, 2019. Retrieved January 3, 2019.
  24. Whiteley, Sheila; Rambarran, Shara (2016). The Oxford Handbook of Music and Virtuality. ISBN 9780199321285.
  25. "A Brief History Of Crowdfunding" (PDF).
  26. "A Brief History Of Crowdfunding" (PDF).
  27. "Can You Spare a Quarter? Crowdfunding Sites Turn Fans into Patrons of the Arts". Wharton. December 8, 2010.
  28. MALIKA ZOUHALI-WORRALL (November 2011). "Comparison of Crowdfunding Websites". Inc.com.
  29. "Crowdfunding's earliest citation".
  30. Catherine Clifford (May 19, 2014). "Crowdfunding Generates More Than $60,000 an Hour (Infographic)". Entrepreneur. Entrepreneur Media, Inc. Retrieved May 25, 2014.
  31. "Crowd funding: An emerging trend in Bollywood". The Times Of India. Retrieved August 12, 2012.
  32. "Crowdfunding as the future of science funding? | The Science Exchange Blog". Blog.scienceexchange.com. May 27, 2012. Retrieved August 19, 2012.
  33. Hollow, Matthew. "Crowdfunding and Civic Society in Europe: A Profitable Partnership?". Open Citizenship. Retrieved April 29, 2013.
  34. Ordanini, A.; Miceli, L.; Pizzetti, M.; Parasuraman, A. (2011). "Crowd-funding: Transforming customers into investors through innovative service platforms". Journal of Service Management. 22 (4): 443. doi:10.1108/09564231111155079. (also available as Scribd document)
  35. Agrawal, Ajay; Catalini, Christian; Goldfarb, Avi (January 1, 2014). "Some Simple Economics of Crowdfunding". Innovation Policy and the Economy. 14 (1): 63–97. doi:10.1086/674021. hdl:1721.1/108043. ISSN 1531-3468.
  36. Agrawal, Ajay; Catalini, Christian; Goldfarb, Avi (February 25, 2015). "Are Syndicates the Killer App of Equity Crowdfunding?". Rochester, NY: Social Science Research Network. doi:10.2139/ssrn.2569988. SSRN 2569988. Cite journal requires |journal= (help)
  37. Tapscott, Don; Tapscott, Alex (May 2016). The Blockchain Revolution: How the Technology Behind Bitcoin is Changing Money, Business, and the World. pp. 82–83, 128, 181, 245–246. ISBN 978-0670069972.
  38. Popper, Nathan (May 21, 2016). "A Venture Fund With Plenty of Virtual Capital, but No Capitalist". New York Times. Retrieved May 22, 2016.
  39. "The DAO of accrue: A new, automated investment fund has attracted stacks of digital money". The Economist. May 21, 2016. Retrieved May 23, 2016.
  40. Waterss, Richard (May 17, 2016). "Automated company raises equivalent of $120M in digital currency". Financial Times. Retrieved May 23, 2016.
  41. Allison, Ian (April 30, 2016). "Ethereum reinvents companies with launch of The DAO". International Business Times. Retrieved May 1, 2016.
  42. Ian Fraser for Unquoted. May 1, 2015 Crowdfunding Part 3: The P2P lenders Archived July 20, 2014, at the Wayback Machine
  43. David M. Freedman and Matthew R. Nutting. A Brief History of Crowdfunding. Updated June 22, 2015
  44. Bill Payne for Gust. May 4th, 2015 US Crowdfunding in 2014
  45. "Nesta Annual Review 2014-2015" (PDF). Archived from the original (PDF) on December 22, 2015. Retrieved August 1, 2015.
  46. "Archived copy". Archived from the original on November 21, 2015. Retrieved November 3, 2015.CS1 maint: archived copy as title (link)
  47. Randazzo, Sara (August 4, 2016). "Litigation Funding Moves Into Mainstream". Wall Street Journal. ISSN 0099-9660. Retrieved February 2, 2017.
  48. "Q&: Rizikitoto's Suraya Shivji, 17, crowd-funds for African orphans". times-standard.com. Archived from the original on January 10, 2015. Retrieved January 10, 2015.
  49. Choy, Katherine; Schlagwein, Daniel (2016), "Crowdsourcing for a better world: On the relation between IT affordances and donor motivations in charitable crowdfunding", Information Technology & People, 29 (1): 221–247, doi:10.1108/ITP-09-2014-0215
  50. Xu, Larry Zhiming (2018). "Will a digital camera cure your sick puppy? Modality and category effects in donation-based crowdfunding". Telematics and Informatics. 35 (7): 1914–1924. doi:10.1016/j.tele.2018.06.004.
  51. Davies, Rodrigo (2015). "Three provocations for civic crowdfunding". Information, Communication & Society. 18 (3): 342–355. doi:10.1080/1369118X.2014.989878. hdl:1721.1/123437.
  52. Belleflamme, P.; Omrani, N.; Peitz, M. (March 2015). "The Economics of Crowdfunding Platforms". Information Economics and Policy. 33: 11–28. doi:10.1016/j.infoecopol.2015.08.003. S2CID 10924359.
  53. Snyder, Jeremy; Mathers, Annalise; Crooks, Valorie (2016). "Fund my treatment!: A call for ethics-focused social science research into the use of crowdfunding for medical care". Social Science & Medicine. 169: 27–30. doi:10.1016/j.socscimed.2016.09.024. PMID 27665200.
  54. Global Crowdfunding Volumes Rise 81% In 2012, August 4, 2013, The Huffington Post, Retrieved at September 7, 2013
  55. The Rise of Crowdfunding October 28, 2015, MyPrivateBanking Research
  56. "Top 10 crowdfunding Platforms". 2012. Retrieved February 9, 2013.
  57. "2,000 Global Crowdfunding Sites to Choose from by 2016". The Huffington Post. October 23, 2015.
  58. Roy, Ritobaan (September 3, 2012). "Crowdfunding: Sideshow or Headline Act? – CFO Insight". Cfo-insight.com. Archived from the original on April 26, 2013. Retrieved September 3, 2013.
  59. Jack Preston (October 13, 2014). "How Marillion Pioneered Crowd Funding".
  60. Tim Masters (September 1, 2013). "Marillion Understood Where The Internet Was Going Early On". BBC News.
  61. "IR35 and the PCG crowdfund". IPSE. Archived from the original on July 28, 2017. Retrieved July 25, 2017.
  62. Don Heckman (February 10, 2008). "Making fans a part of the inner circle". Los Angeles Times. Retrieved October 7, 2011.
  63. "Drownedinsound.com "Wanna Go VIP? Electric Eel Shock'll show you the way...", December 2, 2004".
  64. "itsallhappening, June 24th, 2008". Archived from the original on November 15, 2012.
  65. Kate Bulkley (November 24, 2012). "funding models for film making | Sheffield Doc/Fest 2010 | guardian.co.uk". Guardian. London. Retrieved December 13, 2012.
  66. "Crowd-Funding FAQ". Spanner Films. July 13, 2009. Retrieved December 13, 2012.
  67. Christina Warren (January 17, 2011). "A Guide to Kickstarter & Crowd Funding [INFOGRAPHIC]". Mashable.com. Retrieved December 13, 2012.
  68. Baker, Chris (March 31, 2015). "Fans Have Dropped $77M on This Guy's Buggy, Half-Built Game". Wired.
  69. Dredge, Stuart (April 17, 2014). "Kickstarter's biggest hits: Crowdfunding now sets the trends". The Guardian.
  70. "Amanda Palmer Raises $1.2 Million On Kickstarter, And The Crowd Goes Wild". techdirt.com. June 1, 2012. Retrieved May 3, 2014.
  71. Dawes, Terry (July 11, 2014). "Pimped Out "Coolest" Cooler Set to Break Kickstarter Record". Cantech Letter.
  72. Gertjan Menten (October 15, 2015). "The business behind crowdfunding". Econible. Econible. Archived from the original on October 14, 2015. Retrieved October 15, 2015.
  73. McMillan, Graeme (March 14, 2013). "Veronica Mars Kickstarter Breaks Records, Raises Over $2M in 12 Hours". Wired. ISSN 1059-1028. Retrieved June 26, 2019.
  74. Spangler, Todd (April 5, 2019). "Critical Role Crowdfunding Campaign for Animated D&D Series Tops $8.9 Million Raised". Variety. Retrieved June 14, 2019.
  75. Hughes, William. "MST3K breaks Kickstarter records, secures 14 new episodes". News. Retrieved June 26, 2019.
  76. Emanuella Grinberg. "'Mystery Science Theater 3000' revival breaks record". CNN. Retrieved June 26, 2019.
  77. "Crowdfunding journalism". idio. May 19, 2009. Archived from the original on May 16, 2009. Retrieved May 15, 2009.
  78. Helen Pidd (April 14, 2009). "Teenagers' credit note approach to fund £1m film of Clovis Dardentor". Guardian. London. Retrieved August 19, 2012.
  79. Dell, Kristina (September 4, 2008). "TIME article on crowdfunding the 'Age of Stupid'". Time.com. Retrieved August 19, 2012.
  80. TechCrunch "Sponsume lets projects get off the ground with Groupon-style group funding model"
  81. "TechCrunch 'Grow VC launches, aiming to become the Kiva for tech startups'". Eu.techcrunch.com. February 15, 2010. Retrieved August 19, 2012.
  82. Prentice, Claire (May 12, 2010). "Cash-strapped entrepreneurs get creative". BBC News. Retrieved August 19, 2012.
  83. Crowdfunding Rules Could Create Mini-Disclosure Regime WSJ/CFO Journal, October 24, 2013 Emily Chasan
  84. Kappel, Tim, "Ex Ante Crowdfunding and the Recording Industry: A Model for the U.S.?" in Loyola of Los Angeles Entertainment Law Review, Vol.29, Issue 3, p.376
  85. "How to crowd fund your film". Spanner Films. Retrieved August 19, 2012.
  86. Jens Erik Gould (September 12, 2013). "In Hollywood, Crowdfunding Isn't Just for No-Names". The Financialist. Credit Suisse. Archived from the original on September 16, 2013. Retrieved September 13, 2013.
  87. Bell, Melissa. "Crowd-sourcing a brand", The Washington Post, March 12, 2011, accessed September 3, 2011.
  88. "Is Microfinance for You?" Archived May 14, 2012, at the Wayback Machine, SecondAct, April 17, 2012.
  89. Yurieff, Kaya. "Facebook launches personal fundraising tool".
  90. "Prime Minister hails the rise of 'civic crowdfunding'".
  91. Crowdfunding for Emergencies, by the United Nations Office for the Coordination of Humanitarian Affairs
  92. Masters, Alexander (October 14, 2014). "A plutocratic proposal". Mosaic. The Wellcome Trust. Retrieved July 3, 2016.
  93. Masters, Alexander (July 2, 2016). "Can crowdfunding really cure cancer? Alexander Masters investigates a pioneering new project". The Telegraph. Retrieved July 3, 2016.
  94. Davis, M.; Cartwright, L. (2019). "Financing for Society: Assessing the Suitability of Crowdfunding for the Public Sector". baumaninstitute.leeds.ac.uk. doi:10.5518/100/7. Retrieved July 15, 2020.
  95. O'Connell, Jonathan (June 9, 2013) "Fundrise faces off with skeptical financial services industry over crowd-funded real estate". Washington Post. Retrieved June 26, 2014.
  96. Simon, Ruth and Brown, Eliot(June 11, 2014). "Real-Estate Sector Moves Crowdfunding Beyond the Trinkets". Wall Street Journal. Retrieved June 26, 2014 (subscription required).
  97. "Real Estate Crowdfunding Turns 75". Huffington Post. January 21, 2015.
  98. "Le crowdfunding va devenir un secteur de poids, à l'image du e-commerce". Archived from the original on December 22, 2015.
  99. "Emerging Trends in Real Estate: New market realities" (PDF). pwc.com. Retrieved August 29, 2017.
  100. Entrenching Innovation
  101. Mike Drummond, "Making it Rain: Seeking Seed Money from the Crowd" Archived June 30, 2013, at the Wayback Machine, Inventors Digest, August 2011
  102. Simon Brown. "Simon Brown, "Follow the Crowd", Intellectual Property Magazine, July 2011". Ipworld.com. Retrieved August 19, 2012.
  103. Gorbis, Marina (2013). The Nature of the Future: Dispatches from the Socialstructed World. Simon & Schuster. p. 139. ISBN 978-1-4516-4118-9.
  104. Neel V. Patel. "Neel V. Patel, "Crowdfunded Science is here", Wired Magazine, April 24, 2015". Retrieved October 4, 2016.
  105. Nayanah Siva. "Nayanah Siva, "Crowdfunding medical research picks up the pace", The Lancet, September 20, 2014". Retrieved October 4, 2016.
  106. Mike S. Schaefer; et al. (2016). "Selling Science 2.0". Public Understanding of Science. 27 (5): 496–514. doi:10.1177/0963662516668771. PMC 6041758. PMID 27647666.
  107. Hunter, Andrea (February 2015). "Crowdfunding independent and freelance journalism: Negotiating journalistic norms of autonomy and objectivity". New Media & Society. 17 (2): 272–288. doi:10.1177/1461444814558915.
  108. Aitamurto, Tanja (August 2011). "The Impact of Crowdfunding on Journalism". Journalism Practice. 5 (4): 429–445. doi:10.1080/17512786.2010.551018.
  109. "Spot.us is going away, but its legacy inspires new chapters of crowdfunding playbook". Public Insight Network. Retrieved April 20, 2017.
  110. "Spot.us is going away, but its legacy inspires new chapters of crowdfunding playbook".
  111. Jian, Lian; Usher, Nikki (January 2014). "Crowd-Funded Journalism". Journal of Computer-Mediated Communication. 19 (2): 155–170. doi:10.1111/jcc4.12051.
  112. Bank, World (2013). "Crowdfunding's Potential for the Developing World". Cite journal requires |journal= (help)
  113. "SEC.gov | Rule 506 of Regulation D". www.sec.gov. Retrieved January 1, 2018.
  114. "Intrastate Offering Exemptions:A Small Entity Compliance Guide for Issuers [1]". www.sec.gov. Retrieved January 1, 2018.
  115. "Crowdfunding in a Canadian Context" (PDF). Canada Media Fund. Archived from the original (PDF) on November 18, 2012. Retrieved February 12, 2013.
  116. "Gigaom: What crowdfunding means for the VC business". Retrieved October 15, 2012.
  117. Steve Albini (September 13, 2012). "Re: amanda "$1.2m" palmer wants you to play with her for free" (Forum post). Electrical Audio. Electrical Audio. Retrieved May 19, 2014.
  118. "Oxford Dictionary Definition of Crowdfunding". Retrieved July 23, 2014.
  119. Bogle, Ariel (February 25, 2018). "The hidden costs of crowdfunding medical care".
  120. Isenberg, Daniel (April 23, 2012). "The Road to Crowdfunding Hell – Daniel Isenberg – Harvard Business Review". Blogs.hbr.org. Retrieved August 19, 2012.
  121. Jenna Wortham (September 17, 2012). "Success of Crowdfunding Puts Pressure on Entrepreneurs". The New York Times. Retrieved September 18, 2012.
  122. Mims, Christopher. "Tech Startup Crowdfunding Isn't All It's Cracked Up to Be". Wall Street Journaldate= 7 December 2015.
  123. Caldbeck, Ryan (April 1, 2012). "3 Reasons Crowdfunding Is Good For Investors". Seeking Alpha. Retrieved November 30, 2016.
  124. Agrawal, Ajay; Catalini, Christian; Goldfarb, Avi (June 1, 2015). "Crowdfunding: Geography, Social Networks, and the Timing of Investment Decisions" (PDF). Journal of Economics & Management Strategy. 24 (2): 253–274. doi:10.1111/jems.12093. ISSN 1530-9134.
  125. Kang L, Jiang Q, Tan C-H. Remarkable Advocates: An Investigation of Geographic Distance and Social Capital for Crowdfunding. Information & Management. 2017;54(3):336-348. https://doi.org/10.1016/j.im.2016.09.001
  126. Sisler, J. (January 9, 2012). "Crowdfunding for medical expenses". Canadian Medical Association Journal. 184 (2): E123–E124. doi:10.1503/cmaj.109-4084. PMC 3273528. PMID 22231688.
  127. Berliner, Lauren S.; Kenworthy, Nora J. (August 2017). "Producing a worthy illness: Personal crowdfunding amidst financial crisis". Social Science & Medicine. 187: 233–242. doi:10.1016/j.socscimed.2017.02.008.
  128. Young, Jeffrey (June 19, 2019) [10 June 2019]. "Life And Debt: Stories From Inside America's GoFundMe Health Care System". HuffPost.
  129. Dressler, Gabrielle; Kelly, Sarah A (July 2018). "Ethical implications of medical crowdfunding: the case of Charlie Gard". Journal of Medical Ethics. 44 (7): 453–457. doi:10.1136/medethics-2017-104717. PMID 29728452.
  130. Young, Michael J.; Scheinberg, Ethan (April 25, 2017). "The Rise of Crowdfunding for Medical Care". JAMA. 317 (16): 1623–1624. doi:10.1001/jama.2017.3078. PMID 28334321.

Further reading

Studies and Papers

Press

This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.