Journal articles: 'Investment crowdfunding'

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Battisti, Enrico, Fabio Creta, and Nicola Miglietta. "Equity crowdfunding and regulation: implications for the real estate sector in Italy." Journal of Financial Regulation and Compliance 28, no. 3 (January 10, 2020): 353–68. http://dx.doi.org/10.1108/jfrc-08-2018-0109.

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Purpose This paper gathers initial evidence about the nature and features of the equity crowdfunding model in Italy, especially in terms of regulations. The purpose of this study is to examine how equity crowdfunding might support the real estate sector in Italy. Design/methodology/approach To explore the recent initiatives in the development of FinTech in Italy, especially referring to equity crowdfunding’s instrument, a qualitative perspective is used. In particular, this paper relies on primary data from regulations and secondary data from the public domain, which are examined in relation to the current literature. Findings The results of this study show that equity crowdfunding represents a funding method that is rapidly increasing in Italy, despite rather rigid regulation. Among the various sectors involved, the real estate sector could benefit from the crowdfunding models and, specifically, from the equity one. The development of new real estate equity crowdfunding portals that allow diversification of investment (by reducing the typical entry barriers for real estate investment) could guarantee greater investment transparency and simplicity. Practical implications Real estate crowdfunding can be a simple way to invest in the real estate industry. Thanks to the use of technology, specifically internet-based platforms, this type of crowdfunding allows for small investors, as well as professional investors, to access an asset class otherwise not open to small investment tickets and improve the diversification of investments. Originality/value Although recent literature has examined the concept of crowdfunding and highlighted different models, aspects and campaigns, no prior studies, to the authors’ knowledge, have explicitly and jointly investigated, also based on the state of art of regulation, the equity crowdfunding model and the real estate sector in Italy.

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Papaskua, G. T. "Crowdfunding: The Concept, Types and Risks." Actual Problems of Russian Law 16, no. 7 (July 30, 2021): 77–85. http://dx.doi.org/10.17803/1994-1471.2021.128.7.077-085.

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The paper is devoted to the study of the essence of crowdfunding as an innovative mechanism of investment activity. The author studies the peculiarities of collective investing, analyzes the process of the formation of crowdfunding as a particular case of a broader phenomenon – crowdsourcing, examines the types of crowdfunding (crowdrewarding, crowdinvesting, crowdlending), examines statistical data characterizing the development of crowdfunding relations in Russia and abroad, highlights the risks associated with crowdfunding. According to the author, the peculiarities of crowdfunding are related to the fact that it is, on the one hand, a form of collective investment activity, and on the other hand, a form of crowdsourcing. It involves the investment of insignificant (as compared with the total required amount) funds, aimed at financing projects at the early stages of implementation (start-ups). One of the participants in the crowdfunding relationship is an intermediary between the investor and the recipient of investments – an investment platform. The purpose of investment may be togenerate income, as well as other benefits, in particular goods, priority access to an innovative product, discounts, or the achievement of a socially useful result.

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Blagoev, Dimitar, and Krasimir Petkov. "EQUITY CROWDFUNDING AS A TYPE OF PROJECT INVESTING." Trakia Journal of Sciences 17, Suppl.1 (2019): 234–42. http://dx.doi.org/10.15547/tjs.2019.s.01.039.

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PURPOSE The Article aims to present the potential and capabilities of the application of equity crowdfunding as an option to invest and to form investment portfolios for the individual investors. The emphasis is shifted from the widespread use of the concept of crowdfunding, as a cutting-edge source for providing capital for investment projects of innovative companies (especially suitable source for the so called Startup companies), to its use as a tool for establishing an investment portfolio based on appropriate balance between the rates of return and risk. METHODS Various authors' views on key concepts such as investments, projects, investment projects, equity collective investment, investment portfolios, etc. have been clarified and summarized. The investment process is explained in the context of creating a portfolio of investments using equity crowdfunding platforms. Conceptually, the essential characteristic of the project theory, the theory of collective investment, with its methodological and mathematical tools, are revealed. RESULTS On this theoretical basis and adaptation, a conceptual methodological model has been developed, to be used for selection of portfolio of investment projects for equity collective investment. The model focuses on the optimization of rate of return, given the risk nature of the financial investment instrument used in collective investment. CONCLUSIONS Conclusions are presented about the main advantages and the respective limitations of the type of investments, subject of the paper.

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Dakin, Karl. "Future of Investment Crowdfunding." Technology Transfer and Entrepreneurship 5, no. 1 (November 1, 2018): 11–20. http://dx.doi.org/10.2174/2213809905666180813121122.

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Gasparro, Kate, and Ashby Monk. "Demystifying “localness” of infrastructure assets: Crowdfunders as local intermediaries for global investors." Environment and Planning A: Economy and Space 52, no. 5 (November 11, 2019): 878–97. http://dx.doi.org/10.1177/0308518x19887181.

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Infrastructure assets are networked, urban products that can only be understood through their social, economic, and physical geographies. Because of this, they remain difficult to value and monitor. Recently, financialization of infrastructure assets has codified this information for larger capital markets. But the local knowledge needed to understand local infrastructure assets (LIAs), smaller urban products that are closely intertwined in a community’s economic trends and social fabric, is prohibitive to increased investment. At a time when there is a need for renewed investment in LIAs, a new intermediary, capable of translating “localness,” has emerged. LIA crowdfunding platforms connect capital-seeking agents (asset owners) with capital-giving agents (crowdfunders) to channel resources into LIAs. Through close dialogue and review of nearly 70 LIA crowdfunding platforms, we find that LIA crowdfunding platforms are creating a new marketplace for investments in LIAs. These platforms (a) select crowdfunding models that reflect specific asset values; (b) accredit LIAs and their capital-seeking agents considering local context; (c) translate local knowledge for nonlocal and novice capital-giving agents; and (d) reflect the demand for LIAs. Together, these strategies reduce information asymmetries and translate implicit asset information to nonlocal capital-giving agents, thereby facilitating investments into LIAs. Because of their modest growth, LIA crowdfunding platforms have yet to realize their full potential. To scale, crowdfunding platforms must understand their power in complementing the current infrastructure investment market and focus on how their unique position can unlock new investments in LIAs.

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Lowies, Braam, Christa Viljoen, and Stanley McGreal. "Investor perspectives on property crowdfunding: evidence from Australia." Journal of Financial Management of Property and Construction 22, no. 3 (November 6, 2017): 303–21. http://dx.doi.org/10.1108/jfmpc-12-2016-0055.

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Purpose The purpose of this study is to investigate the perceptions of property investors of the risks and returns associated with property crowdfunding as an investment vehicle. The study contributes to the understanding of alternative property investment vehicles and how it is perceived by investors. Design/methodology/approach The study focusses on investor perceptions in using property crowdfunding as an investment vehicle and follows a survey-based design. A questionnaire was finalised after the completion of a pilot study and was distributed to existing property crowdfunding investors via email. Inferential statistical measures were used. Findings The results show, to an extent, similarities to general equity-based crowdfunding studies. However, the uniqueness of property crowdfunding as an investment vehicle may explain the insignificance of the results when related to other studies. Overall, the property crowdfunding investor seems to present cautious behaviour with a conservative perception of property crowdfunding as an investment vehicle. Practical implications It is recommended that property crowdfunding platforms present prospective investors with more formal regulation of the property crowdfunding industry. Such a regulatory framework may lessen the current level of uncertainty presented by investors. Originality/value The study enhances the understanding of the role of property crowdfunding as an alternative investment vehicle in Australia. More importantly, it went some way towards enhancing the understanding of how investors perceive and behave vis-à-vis property crowdfunding as an investment vehicle.

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Ryandono, Muhammad Nafik Hadi, Ida Wijayanti, and Kumara Adji Kusuma. "Determinants of Investment In Islamic Crowdfunding." Muqtasid: Jurnal Ekonomi dan Perbankan Syariah 11, no. 1 (June 30, 2020): 70–87. http://dx.doi.org/10.18326/muqtasid.v11i1.70-87.

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Investment decisions in Islamic Crowdfunding have many determinants, including: project quality, creator abilities, social network creators, reputation and entrepreneur experiences. This study examines the influence of significant and insignificant determinants of investment in Islamic Crowdfunding. It uses a random sampling technique with Structural Equation Modeling Partial Least Square (PLS) as the analysis model. The results show that social creators and entrepreneur experiences have a significant effect on investment in Islamic Crowdfunding. Contrastingly, project quality, creator ability, and reputation have insignificant influences. Entrepreneur experiences and reputation of the platform have dominant and least influence on investment in Islamic crowdfunding, respectively. Creator’s ability has a dominant-negative effect on Islamic Crowdfunding, and therefore, it requires special attention. The sharia values contained in all investment determinants are the primary consideration by investors. Therefore, increasingly inevitable sharia compliance is a necessity from time to time.

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Strausz, Roland. "A Theory of Crowdfunding: A Mechanism Design Approach with Demand Uncertainty and Moral Hazard." American Economic Review 107, no. 6 (June 1, 2017): 1430–76. http://dx.doi.org/10.1257/aer.20151700.

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Crowdfunding provides innovation in enabling entrepreneurs to contract with consumers before investment. Under aggregate demand uncertainty, this improves screening for valuable projects. Entrepreneurial moral hazard and private cost information threatens this benefit. Crowdfunding's after-markets enable consumers to actively implement deferred payments and thereby manage moral hazard. Popular crowdfunding platforms offer schemes that allow consumers to do so through conditional pledging behavior. Efficiency is sustainable only if expected returns exceed an agency cost associated with the entrepreneurial incentive problems. By reducing demand uncertainty, crowdfunding promotes welfare and complements traditional entrepreneurial financing, which focuses on controlling moral hazard. (JEL D21, D81, D82, D86, G32, L26)

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Valko, Danila. "Crowdfunding as a tool for investing in sustainable development projects and its place in the green finance ecosystem." St Petersburg University Journal of Economic Studies 37, no. 1 (2021): 109–39. http://dx.doi.org/10.21638/spbu05.2021.105.

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This article discusses and substantiates the potential of “green crowdfunding” as a component of the ecosystem of green finance, including the consideration of its investment features in financing projects aimed at sustainable development. The main hypothesis under discussion is that crowdfunding technologies have the potential to increase the financial and commercial success of environmentally-oriented projects. The achievement of this goal is mediated by methods of analysis of empirical research, bibliometric and content analysis of publications in the framework of a systematic approach. The logic of this work predetermines the following range of tasks: outlining and characterizing the conventional classification of crowdfunding, systematizing its modern forms; bibliometric and content analysis of the demand for the concept of green crowdfunding in foreign and domestic studies, as well as the selection of the conventional interpretation; systematization of the investment features of green crowdfunding projects; and highlighting the place of green crowdfunding in the ecosystem of green finance. Green crowdfunding, given the current limitations, remains largely adequate to the conditions of the ecosystem of green finance, as it supports the selection of green investments in the global environment of collective investment and interconnects the distributed sources of ideas in the field of sustainable development with funding sources. This is most relevant in the context of national economic crises and uneven market compression, where individuals from other regions and countries can easily be drawn to finance.

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Narayanan, Meyyappan. "Investor Compensation in Investment Crowdfunding." Academy of Management Proceedings 2017, no. 1 (August 2017): 13675. http://dx.doi.org/10.5465/ambpp.2017.13675abstract.

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Walther, Martin, and Marco Bade. "Observational learning and willingness to pay in equity crowdfunding." Business Research 13, no. 2 (January 7, 2020): 639–61. http://dx.doi.org/10.1007/s40685-019-00107-8.

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AbstractThis study examines interdependencies between investments of equity crowdfunders. Based on hand-collected data from a well-established equity-crowdfunding platform, we find strong indication that investors observe previous investments to determine their willingness to pay for equity shares. Furthermore, the investment behavior of predecessors may lead investors to deviate from average investment behavior. In particular, investors are willing to pay more than the average investment, when the focal campaign is hot or there have been many large investments in the campaign. Remarkably, a high number of all previous investments over the entire period of the campaign as well as co-financing by presumably sophisticated investors negatively influence willingness to pay. This suggests that crowd investors are subject to partial crowding-out. These findings are different on the platform level, which suggests that investors’ behavior is rather information than sentiment-driven.

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Lakoza, Marina. "Collective investment instruments in the Russian financial market." Scientific notes of the Russian academy of entrepreneurship 19, no. 2 (May 28, 2020): 131–37. http://dx.doi.org/10.24182/2073-6258-2020-19-2-131-137.

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The essence of collective investment is revealed. The legal regulation of collective investments in Russia is characterized. Collective investment instruments such as private pension funds, mutual funds and crowdfunding are consistently characterized. The main features of the functioning of these tools in Russian conditions are determined.

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Gazzaz, Heba. "Crowdfunding in Saudi Arabia: A Case Study of the Manafa Platform." International Journal of Economics and Finance 11, no. 11 (October 31, 2019): 72. http://dx.doi.org/10.5539/ijef.v11n11p72.

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Crowdfunding is an innovative form of financial support that is increasingly used around the world. Crowdfunding can provide a new investment channel and help those with innovative ideas and start-up businesses to circumvent traditional financing struggles and secure alternative finance. This paper presents an overview of crowdfunding, its fundamentals, and its main participants. Specifically, it explores the characteristics of crowdfunding in Saudi Arabia by examining the first and successful crowdfunding platform (Manafa) to be licensed by the country’s capital market authority. This paper shows that the sole applicable model in Saudi Arabia is equity-based crowdfunding, and this is significantly controlled and operated under a more efficient legal framework than much foreign crowdfunding. However, the Saudi market would benefit from greater awareness of crowdfunding as a new investment channel, and from the introduction of the debt-based crowdfunding model in accordance with Saudi market regulations.

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Hervé, Fabrice, Elodie Manthé, Aurélie Sannajust, and Armin Schwienbacher. "Determinants of individual investment decisions in investment-based crowdfunding." Journal of Business Finance & Accounting 46, no. 5-6 (February 18, 2019): 762–83. http://dx.doi.org/10.1111/jbfa.12372.

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Forbes, H., J. Han, and D. Schaefer. "USING CROWDFUNDING AS PART OF THE PRODUCT DEVELOPMENT PROCESS." Proceedings of the Design Society: DESIGN Conference 1 (May 2020): 1245–54. http://dx.doi.org/10.1017/dsd.2020.256.

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AbstractCrowdfunding is the process of taking a project in need of investment and asking a large group of people to supply the investment. It allows organisations to sell their product before production, reducing the risk of new product development. Organisations such as Tesla and General Electric have used crowdfunding successfully but crowdfunding is yet to be explored as part of a formalised product development framework. This paper includes the business case for commercialising new products with crowdfunding and presents crowdfunding as part of a product development and commercialisation framework.

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Tomczak, Alan, and Alexander Brem. "A conceptualized investment model of crowdfunding." Venture Capital 15, no. 4 (October 2013): 335–59. http://dx.doi.org/10.1080/13691066.2013.847614.

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Yasar, Burze. "The new investment landscape: Equity crowdfunding." Central Bank Review 21, no. 1 (March 2021): 1–16. http://dx.doi.org/10.1016/j.cbrev.2021.01.001.

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Matytsin, D. Е. "Protection of the Rights of Crowfunding Participants as an Electronic-Digital Method for Attracting Investments." Journal of Law and Administration 16, no. 2 (June 26, 2020): 78–82. http://dx.doi.org/10.24833/2073-8420-2020-2-55-76-82.

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Introduction. The article is devoted to identifying the shortcomings of civil law mechanisms currently in force in Russia to protect the rights and legitimate interests of crowdfunding entities based on technologies of Industry 4.0. The relevance of the declared topic is predetermined by the need for technological improvement of production processes during the period of neo-industrial transformations of the national economy, which, in turn, are impossible without impressive investments.Materials and methods. Researchers’ attention is focused on the Federal Law “On Attracting Investments Using Investment Platforms and Amending Certain Regulatory Acts of the Russian Federation”, the systemic change of which, in the author’s opinion, can solve the complex task of improving the existing set of financial instruments through the use of the latest digital technologies. The author uses the methods of system analysis, the formal legal and comparative legal method of scientific research.Research results. Recognizing the high importance of crowdfunding in a neo-industrial economy, the author devoted his research to the protection of the rights and legitimate interests of entities involved in investment relations. The unresolved issues and the provisions requiring modernization are analyzed, which are contained in the Federal Law “On attracting investments using investment platforms and amending certain regulatory acts of the Russian Federation”. As a result of the analysis, specific proposals and recommendations on improving the federal law were made.Discussion and conclusions. The necessity of the emergence of new high-tech financial instruments to raise funds, allowing to radically improve the quality of decision-making in all sectors of the economy, including in the field of banking services, as well as significantly accelerate the transaction process, is substantiated. One of these developing instruments for investing in the fourth industrial revolution looking to the future is crowdfunding. The advantages of using crowdfunding and crowdinvesting platforms as investment transaction technologies are revealed.

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Melnyk, V. O. "Modification of Personal Investment Tools from the Perspective of Digital Finance and Its Influence on Ukrainian Finance Market." Business Inform 6, no. 521 (2021): 205–12. http://dx.doi.org/10.32983/2222-4459-2021-6-205-212.

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Drastic changes in the financial services market under the influence of digitalization determine the relevance of research of the modern structure of this market, taking into account the emergence and development of the FinTech innovations. The increase in new investment instruments is attracting the attention of an increasing number of individual investors in the digital finance industry. Considering these tools, the preferences of individual investors require a separate study. The article is aimed at studying the financial market in digital finance and analyzing such types of investments as cryptocurrencies and crowdfunding, as well as the characterizing the online brokerage as a way to obtain investment services among individual investors. As a result of the study, the place and role of cryptocurrencies, crowdfunding and online brokerage in the investment activities of individuals is substantiated; the main mechanisms of work of these financial instruments are allocated and features of their development in Ukraine are characterized. The main disadvantages and advantages of crowdfunding and cryptocurrencies are defined and further steps are proposed regarding the prospects for their development in Ukraine. In addition, the article analyzes the current state of functioning of the online brokerage service in Ukraine and proves the relevance of the allocation of these financial instruments at the legislative level. Prospects for further research in this direction are the analysis of other digital instruments of personal investments, as well as a detailed study of the specifics of functioning of crowdfunding, cryptocurrencies and online brokerage in Ukraine. For the more efficient functioning of investment instruments in the sphere of digital finance, as well as effective use in practical activities, it becomes necessary to closer define these concepts at the legislative level and to substantiate the specifics of their work in detail.

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Bargain, Olivier, Jean-Marie Cardebat, and Alexandra Vignolles. "Crowdfunding in the Wine Industry." Journal of Wine Economics 13, no. 1 (February 2018): 57–82. http://dx.doi.org/10.1017/jwe.2018.3.

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AbstractCrowdfunding has recently emerged as a novel way of financing new ventures. It coincides with a growing interest in wine as an investment good and with a search for new funding opportunities by wine makers. In this study, we examine potential investors willing to engage in wine crowdfunded projects and the kind of revenue that would attract them. We presented an original survey where respondents were asked about their wine consumption and purchase, their knowledge about crowdfunding, their relation to the internet, their investment and project related to wine crowdfunding, and their expectations concerning the returns from this type of contribution. Our results suggest that among all forms of crowdfunding, the donation/voluntary contribution side driven by intrinsic motivation is likely to remain marginal compared to crowdfunding as an investment or a form of early purchase. (JEL Classifications: G11, G12, G21, L17, L66)

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Kang, Minghui, Yiwen Gao, Tao Wang, and Haichao Zheng. "Understanding the determinants of funders’ investment intentions on crowdfunding platforms." Industrial Management & Data Systems 116, no. 8 (September 12, 2016): 1800–1819. http://dx.doi.org/10.1108/imds-07-2015-0312.

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Purpose The purpose of this paper is to identify funders’ motivations for investing in crowdfunding. It applies trust theory to propose a research model including three subject measures – fundraiser-related, project-related and platform-related factors. Trust has been categorized into cognitive and affective dimensions to specifically analyze the influential factors. Design/methodology/approach Bootstrapping is employed to analyze data collected from respondents with investment experience on equity crowdfunding projects. Structural equation modeling techniques are adopted to examine the factors that influence trust between funders and crowdfunding as well as the outcomes of this trust. Findings The results indicate that calculus trust and relationship trust collectively or separately transmit the effect of some antecedents to investment intention. However, there is no evidence indicating the mediating effects of calculus trust and relationship trust on the relationship of structural assurance and value congruence to investment intention. Practical implications This paper provides insights for crowdfunding fundraisers on how to build a strong relationship with funders, and it also gives crowdfunding designers advice on how to improve and perfect the platform functions. Originality/value This study contributes to a better understanding of the driving forces of calculus and relationship trust and their influence on investment intention. It is also the first to address a funder’s trust using a theoretical model describing the investor intention in crowdfunding and thereby extending the knowledge base of trust theory.

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Alińska, Agnieszka. "CROWDFUNDING IN INVESTMENT ACTIVITIES OF LOCAL GOVERNMENT UNITS." Prace Naukowe Uniwersytetu Ekonomicznego we Wrocławiu, no. 485 (2017): 11–21. http://dx.doi.org/10.15611/pn.2017.485.01.

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Kashkin, S. Yu, A. V. Altoukhov, and N. A. Pozhilova. "PLATFORM LAW AS A TOOL FOR INNOVATIVE INVESTMENT PLATFORMS (CROWDFUNDING)." Courier of Kutafin Moscow State Law University (MSAL)), no. 1 (April 7, 2021): 155–64. http://dx.doi.org/10.17803/2311-5998.2021.77.1.155-164.

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The article considers the problems of legal regulation of crowdfunding in Russia, as well as in the USA and the European Union. The concepts of crowdfunding and related terms (platform, network) are disclosed, the advantages and risks of such investment platforms to raise funds to finance projects, including using artificial intelligence technologies, are shown. Particular attention is paid to the consideration of existing legislative norms regarding the regulation of modern investment mechanisms, especially crowdfunding. Based on the results of the study, conclusions and recommendations on the development of legal support for platform financial solutions are formulated.

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Li, Yaokuang, Junjuan Du, and Weizhong Fu. "Thirty days are enough: what determines the crowd's cash time in agri-food crowdfunding?" China Agricultural Economic Review 12, no. 3 (July 2, 2020): 553–75. http://dx.doi.org/10.1108/caer-10-2019-0176.

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PurposeThe purpose of this paper is to investigate the factors influencing quick cash by crowd in agri-food crowdfunding campaigns; this paper utilizes prospect theory to analyze the value and weighting functions of the crowd's cash.Design/methodology/approachUsing samples of crowdfunding campaigns launched in the Zhongchou (www.Zhongchou.cn) platform's agriculture and food category, this paper employs a multivariate linear regression model to investigate factors that motivate the crowd to make quick investment decisions.FindingsThe results demonstrate that lowering the investment threshold, improving publicity, and increasing the benefits of a campaign can increase the decision weight assigned to a campaign, thereby motivating the crowd to make quick investment decisions. Improving the product's reputation, enhancing campaign promotion, and diversifying the reward scheme can increase the crowd's expected value of the campaign – another motivation for a quicker cash decision.Practical implicationsThis paper can help initiators, platforms and regulators better fulfil their roles in promoting the rapid, healthy development of crowdfunding in the agri-food industry, especially in the context of the Chinese launch of significant initiatives to develop crowdfunding aimed at rural e-commerce and poverty alleviation.Originality/valueThis paper extends the behavioral finance concept of prospect theory to agri-food crowdfunding campaigns and investigates factors that motivate the crowd to make quick investment decisions. Additionally, this paper demonstrates that the backers of crowdfunding are not perfectly rational and can be motivated to invest by increasing mean decision weight and expected value of a campaign.

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Khakimovna, Ruzibaeva Nargiza, and Khotamkulova Madina Sanjar Kizi. "The role of crowdfunding in investment process and interaction of crowdfunding platforms." ACADEMICIA: An International Multidisciplinary Research Journal 11, no. 4 (2021): 232–41. http://dx.doi.org/10.5958/2249-7137.2021.01040.5.

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Chudinovskikh, Marina Vyacheslavovna, and Yuliya Viktorovna Kuvaeva. "Regulation of the model types of crowdfunding: China's experience and its applicability in Russia." Финансы и управление, no. 2 (February 2021): 15–28. http://dx.doi.org/10.25136/2409-7802.2021.2.34030.

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This article is dedicated to assessment of the experience of regulation of crowdfunding market in China, as well as its applicability and adaptation in Russia. The key goal consists in conducting a comparative analysis of the approaches towards regulation of crowdfunding in China and Russia. The relevance is define by enactment of the law of August 2, 2019. N.259-FZ “On Attraction of Investments via Investment Platforms and On Introducing Amendments to Separate Legislative Acts of the Russian Federation”. The research is based on the international and Russian statistical data, conceptual reports of the International Organization of Securities Commissions (IOSCO), Cambridge Center for Alternative Finance, and the Bank of Russia. The conclusion is made that it is China that China holds the leading position in the world crowdfunding market. Most widespread in China is Peer-to-peer (P2P) lending via digital platforms. The absence of special regulation led to an investment boom that lasted until 2017, followed by the bankruptcy of a multiple platforms and projects. Strengthening of the state control entailed reduction in alternative financing. The authors formulate recommendations for improving the regulatory approaches towards crowdfunding. The use of RegTech and SupTech technologies is considered as promising direction.

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Gostkowska-Drzewiecka, Magdalena. "Real Estate Crowdfunding as a Source of Investment Financing." Zeszyty Naukowe Uniwersytetu Szczecińskiego Finanse Rynki Finansowe Ubezpieczenia 79 (2016): 57–71. http://dx.doi.org/10.18276/frfu.2016.79-04.

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Jihan Nadra Arifah and Zuliani Dalimunthe. "The Impact of Financial Literacy on the Investment Decision of Non-Donation-Based Crowdfunding in Indonesia." International Journal of Business and Society 21, no. 3 (April 23, 2021): 1045–57. http://dx.doi.org/10.33736/ijbs.3310.2020.

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The present study investigates the heterogeneity of the financial literacy level between backers and nonbackers of non-donation-based crowdfunding in Indonesia and how the financial literacy relates to the country’s decision to invest through non-donation crowdfunding. We choose Indonesia for a case study because non-donation crowdfunding has become a new investment mode recently in this area. The study extends the analysis to the predictors of financial literacy and its impact on the investment decision of nondonation crowdfunding. The hypotheses are examined through binary logistic regression. The study’s findings are as follows. First, there is heterogeneity in the financial literacy level between backers and nonbackers. Second, the financial literacy level is found to be affected by residence, education, income, and stock market product ownership. Third, investors in crowdfunding have a tendency to be in the younger age group. Fourth, males have a higher tendency to invest in non-donation crowdfunding than females, despite the lack of difference in financial literacy between them. Fifth, individuals in the lowest income group are more likely to invest in non-donation crowdfunding than individuals with larger incomes.

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Siva Reddy, P., K. Ravikiran, and B. Kalyan Kumar. "Crowdfunding-The Investment Tool for Millennial Entrepreneurs." VISION: Journal of Indian Taxation 6, no. 1 (June 1, 2019): 50. http://dx.doi.org/10.17492/vision.v6i1.185483.

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Zhou, Sha, Tao Ma, and Zhengchi Liu. "Crowdfunding as a screener for collective investment." Electronic Commerce Research 21, no. 1 (March 2021): 195–221. http://dx.doi.org/10.1007/s10660-021-09461-4.

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San Martín, Héctor, Blanca Hernández, and Ángel Herrero. "Social Consciousness and Perceived Risk as Drivers of Crowdfunding as a Socially Responsible Investment in Tourism." Journal of Travel Research 60, no. 1 (February 8, 2020): 16–30. http://dx.doi.org/10.1177/0047287519896017.

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This article is a first step in examining reward-based crowdfunding in tourism as a socially responsible investment where individuals collaborate with projects that contribute to the development of their communities in economic, environmental, and/or sociocultural terms. Thus, the present study develops a model where social consciousness and perceived risk are postulated to influence individuals’ attitudes toward and intentions to participate in a project of crowdfunding. Based on a simulated crowdfunding project of “enotourism” that contributes to the development of a region in Spain, results reflect that the main drivers of individuals’ overall attitude toward crowdfunding are social consciousness and platform risk. Additionally, individuals’ intentions to fund the tourism project are influenced by their specific attitude toward the project and their overall attitude toward crowdfunding.

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Izaaz S., Ardhityar, and Rinabi Tanamal. "Analisis Pengaruh Kualitas Layanan terhadap Kepuasan Pelanggan pada Platform Investasi Crownfunding berbasis Mobile." Proceedings of the ICECRS 2, no. 1 (July 28, 2019): 1. http://dx.doi.org/10.21070/picecrs.v2i1.2390.

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Investment is planting of assets carried out by company or individual. One of investment model is crowdfunding where collecting funds from large community so that significant funds are collected. Crowdfunding is managed by mobile application platform so that make easily accessed. To make customer investment, it is necessary through an investment provider. One of the important things of investment provider is service quality. Sometimes investment provider companies have problem in knowing the factor that can increase customer satisfication. This can make the company wrong in providing services needed by its customer.To find out the level of investor satisfication an analyse of factor that influence satisfication can be done. Factor of service quality can be used in the analyse. In service quality there are several factor namely tangibels, reliability, responsiveness, assurance and emphaty. In analysing used SPSS software to see the influence of these factors. After conducting research shows that service quality can affect customer satisfication, especially in the variables of reliability, responsiveness and tangibels that have significant influence. For the assurance and emphaty variables, they have an influence but not significantly. Therefore crowdfunding investment platform can implement aspects of service quality to influence their investor satisfication.

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Neopulo, K. L., I. S. Popov, and A. S. Kuksov. "TRENDS AND PROSPECTS FOR THE IMPLEMENTATION OF CROWDFUNDING AS A WAY OF FINANCING INVESTMENT PROJECTS IN RUSSIA." Vestnik Universiteta, no. 1 (March 23, 2020): 129–36. http://dx.doi.org/10.26425/1816-4277-2020-1-129-136.

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With the rapid development of the digital economy and business transformation, modern financial technology tools are becoming more and more in demand. This article explores and reflects the main aspects of crowdfunding financing in the Russian Federation. The significance of crowdfunding in the implementation of projects, in particular in the social sphere, has been determined. The analysis has been presented and statistics of the most popular crowdfunding services has been displayed. The structure of crowdfunding financing by areas, country of ownership of users of the investment platform Planeta.ru has been considered. The factors have been reflected and the main vectors of the development of crowdfunding as a full-fledged financing mechanism in modern conditions have been formulated.

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Cho, Park, and Sung. "The Study on the Difference in Corporate Performance and Employment Outcomes According to the Results of Equity-Based Crowdfunding Investment." Journal of Open Innovation: Technology, Market, and Complexity 5, no. 4 (October 12, 2019): 83. http://dx.doi.org/10.3390/joitmc5040083.

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The purpose of this study is to identify the difference in firm performance and employment growth between successful and failed capital procurement through equity-based crowdfunding. We conduct an empirical analysis using entire crowdfunding projects that attempted to raise capital through equity-based crowdfunding in South Korea in 2016. We summarize our findings as follows. Descriptive statistics show that the survival rate, sales growth rate, profitability growth, absolute employment growth, and employment growth rate of companies with successful crowdfunding are higher than those of companies with failed crowdfunding. However, from the difference analysis, we do not find a significant difference in the survival rate, sales growth rate, and profitability growth between companies with crowdfunding success and companies with crowdfunding failure. We find that the absolute employment growth and employment growth rate are significantly higher for companies that succeeded in crowdfunding projects compared to companies that did not. In this study, we find that the characteristics of these firms that are conducting or verifying new projects through equity-based crowdfunding financing are similar to those of prior studies results confirming the short-term effects of entrepreneurial activities or new business activities on economic performance and employment growth. In particular, it is very meaningful to confirm that the direct effect of employment growth is also found in start-up firms that raise capital through equity-based crowdfunding. By investigating the difference in firm performance and employment outcomes according to the results of equity-based crowdfunding investment, this study provides useful insights to investors for their efforts to validate participation in crowdfunding. Also, our study raises important policy implications for regulators in their efforts to resolve unemployment and the lack of capital problem for startups and new businesses.

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Lee, Ae Ri, Sang-Jong Lee, Kyung Kyu Kim, and Hyuk-Jun Kwon. "Promoting the Masses' Investment through Crowdfunding Platform: Focusing on Lending based Crowdfunding Platform." Journal of the Korea Contents Association 16, no. 11 (November 28, 2016): 644–60. http://dx.doi.org/10.5392/jkca.2016.16.11.644.

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Akhmetova, Julia. "Сrowdfunding platforms as an example of innovation startup’s financial support." SHS Web of Conferences 116 (2021): 00073. http://dx.doi.org/10.1051/shsconf/202111600073.

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Financial support is very important in the innovative sphere, because it creates the basis of the whole economic development. There are several ways how this support can be organized: from the family money to government subsidy. This paper focused on a relatively new way how a startup as a small innovative business can gain finance - crowdfunding platforms. As a preparation for the analysis theoretical concepts of innovative startup investment were considered and the unique characteristics of crowdfunding market were examined. The purpose of the study is to underline main characteristic of startups as a way of financial innovation performance, analyze the determinants of crowdfunding platform’s effectiveness, define an optimal strategic behavior for a platform to accumulate greater amount of investment and increase the number of startups which achieve their financial goals. Analysis is based on the data from 105 crowdfunding platforms during last 3 year (from 2018 till 2020). As a result, based on the multiple linear regression an analysis was conducted which showed that age, platform type and scope are main characteristics of crowdfunding platform efficiency while commission type is not correlated with startup crowdfunding success rate.

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Дятлова, Ангелина, Angelina Dyatlova, Гузалия Клычова, and Guzaliya Klychova. "SOME ASPECTS OF ACCOUNTING AND TAXATION IN THE CROWDFUNDING FIELD OF ACTIVITY." Vestnik of Kazan State Agrarian University 14, no. 3 (October 30, 2019): 149–54. http://dx.doi.org/10.12737/article_5db98c7e6d7ff4.87339495.

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This article provides a brief description of the crowdfunding sphere of activity and the procedure for its formation, its main types, ways of involving money in this sphere of activity, it offers standard records of facts of economic life in accounting and tax accounting, methods of generating funds for charitable investment projects and features of tax calculations in each of them (donation, donation, provision of services, loans, sale of shares, investments). Crowdfunding is a concept of foreign origin. This is essentially the totality of all types of non-profit charitable activities to raise funds in the form of investments for various purposes according to the agreement. The main principles of these types of activities are the attraction of sponsorship funds free of charge, the targeted use of funds, confidentiality, reliability and responsibility of the sponsored person to investors of funds. At the same time, the functioning of sponsored charitable organizations should be carried out on the basis of existing regulatory legal acts in terms of their state registration, accounting and tax calculations and other areas. Understanding the nature of crowdfunding, their development, procedures for the formation of crowdfunding formations (or entities, organizations, companies and other concepts), the effectiveness of this field of activity, the rules of settlement relationships between participants of crowdfunding companies with the state and their reflection in accounting and tax accounting currently cause significant interest in charity organizations.

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Dziawgo, Leszek, and Danuta Dziawgo. "Crowdfunding in the Wider Perspective Investment Crowdfunding: Competition Between Regulations, Institutions, and Economic Freedom." e-Finanse 15, no. 2 (June 1, 2019): 1–7. http://dx.doi.org/10.2478/fiqf-2019-0007.

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AbstractThe aim of this article is to present Investment Crowdfunding (ICF) in a perspective wider than merely as a new form of financing a certain category of business ventures. Selected aspects of ICF as a phenomenon that is a manifestation of the conflict between economic freedom and regulations and financial market institutions will be emphasized. New concepts of the part of the modern economy in the period of digitization, referred to as the collaborative economy, mesh economy, or sharing economy, should also be taken into account. The issues of excessive and restrictive regulation of the financial market will be presented in this context, as well as the constraints and risk factors of ICF operation and the Polish ICF experience.The study hypothesises that Investment Crowdfunding is a viable alternative for financing micro and small economic projects, if compared to the traditional and over-regulated forms of financing. The usefulness of Investment Crowdfunding concerns primarily economic projects of the start-up category. The study uses the following research methods: critical analysis of the literature of the issue, descriptive and comparative analysis, case study, and deduction.The theoretical considerations and examples presented in the article should be treated with appropriate research caution. However, they make it possible to positively verify the hypothesis.

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Muhammad (Federal University, Gashua, Yobe State, Nigeria), Tijjani, and Assoc Prof Dr Besar bin Ngah (Al-Madinah International University Malaysia). "Modeling Debt And Equity Crowdfunding Based On Murabahah, Musharakah And Mudarabah: Trust And Awareness." IKONOMIKA 5, no. 2 (December 2, 2020): 271–96. http://dx.doi.org/10.24042/febi.v5i2.7789.

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Crowdfunding become one of the most effective alternatives for raising funds, although it is not a new phenomenon in developed and developing countries but seems to be new in Nigeria. As such, the study aims to propose Shariah framework that addresses conventional debt and equity crowdfunding, instead, using Murabaha as debt, Mudarabah and Musharakah as equity model and further measure the level of awareness and trust towards behavioural intention towards crowdfunding in Northern Nigeria. The sample was collected from 2730 purposively selected and used Structural Equation Modeling (SEM) for data analysis. Findings, revealed that the proposed structural framework of crowdfunding proved to enhance entrepreneur vision for raising investment fund based on Shariah-compliant in Northern Nigeria. Further indicates, lack of awareness and inappropriate use of internet platform resulted in perceived entirely irrelevant investment opportunities and developed fair to invest online. Practical implications: The paper provides awareness and trust on how to improve debt and equity-based crowdfunding for a fundraiser and successful funding a business structure based on Shariah compliant. Originality/Value: the study makes significant contribution towards propose Shariah framework of crowdfunding in Nigeria, and it provides awareness and trust to Nigerian Muslims entrepreneurs as in line with Shariah-compliant.JEL Classification: E4, O31, O35

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Seo, Bong-Goon, and Do-Hyung Park. "Did You Invest Less Than Me? The Effect of Other’s Share of Investment on Psychological Ownership of Crowdfunding Projects." Sustainability 12, no. 5 (March 6, 2020): 2025. http://dx.doi.org/10.3390/su12052025.

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The development of information technology, in an online context, has expanded into collective consumption, e.g., crowdfunding projects. Moreover, people feel a sense of psychological ownership (“it is mine”) toward projects they invest in, even if their attributes are immaterial or intangible. This research focuses on changes in psychological ownership based on the characteristics of crowdfunding projects, which are collectively invested in with others, and the attributes of objects (tangible/intangible). Specifically, this research seeks to determine how psychological ownership is affected by information about the amount of money invested by others in a shared project. Additionally, this research investigates whether psychological ownership changes based on others’ investment (less/more) and the attributes (tangible/intangible) of the project. The findings from the empirical analysis indicate that psychological ownership changes based on information regarding other people’s investment in a shared crowdfunding project. The results also show that, in projects with tangible attributes, psychological ownership changes based on investment information; however, no changes were observed in projects with intangible attributes.

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Jung, Joo Young, and Ji Yeol Jimmy Oh. "The Introduction and Effect of SAFE in Equity-Based Crowdfunding." Korean Journal of Financial Studies 49, no. 2 (April 30, 2020): 189–215. http://dx.doi.org/10.26845/kjfs.2020.04.49.2.189.

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This study analyzes the valuation problems surrounding equity-based crowdfunding issuers and examines the introduction of the simple agreement for future equity (SAFE) as a means of solving them. We first analyze four stocks with crowdfunding experience listed on KONEX and K-OTC. In all instances, market capitalization consistently fell below the level at the time of the crowdfunding application. We therefore suggest the introduction of SAFE in crowdfunding as a potential solution. SAFE ameliorates the over-valuation problem by setting only minimum requirements such as valuation caps and by delaying the evaluation of corporate value until a follow-up investment is made. However, investor protection should be considered when introducing SAFE in Korea. First, the definition of “subsequent investments” should be clarified to prevent the issuer from intentionally delaying the transfer of shares. Second, the inclusion of financial performance in SAFE's share conversion conditions would prevent the firm from delaying share conversion while receiving favorable cash flows. Third, the scope of companies that can issue SAFE should be clearly defined to prevent firms from misusing them to avoid managerial interference. This study contributes as the first study within the Korean academia on the introduction and effectiveness of SAFE in crowdfunding.

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Cicchiello, Antonella Francesca, and Daniele Leone. "Encouraging investment in SMEs through equity-based crowdfunding." International Journal of Globalisation and Small Business 11, no. 3 (2020): 258. http://dx.doi.org/10.1504/ijgsb.2020.10031681.

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Cicchiello, Antonella Francesca, and Daniele Leone. "Encouraging investment in SMEs through equity-based crowdfunding." International Journal of Globalisation and Small Business 11, no. 3 (2020): 258. http://dx.doi.org/10.1504/ijgsb.2020.109553.

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Muradov, Z. A., and S.-U. S.-A. Vozkaev. "NEW INVESTMENT LANDSCAPE OF PRIVATE FINANCE: CROWDFUNDING SHARES." Вестник Алтайской академии экономики и права 1, no. 6 2021 (2021): 84–89. http://dx.doi.org/10.17513/vaael.1732.

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Prokofeva, Elena, Marina Chudinovskikh, Yulia Kuvaeva, Olesya Kononenko, and Nadezhda Boronenkova. "Crowdfunding regulation models: international and Russian experience in context of sustainable development." E3S Web of Conferences 208 (2020): 06009. http://dx.doi.org/10.1051/e3sconf/202020806009.

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The conditions, promoting active development of crowdfunding market through which the so-called “alternative financing” is implemented, have been created in the global economy in the last few years. The article discusses the transformation experience of crowdfunding model types during the period from 2014, describes the existing regimes of legal regulation of crowdfunding in worldwide practice. Special attention is given to the description of Russian legal initiative aimed at the implementation of crowd-technologies in the investment activities. The authors identified three approaches to the crowdfunding regulation: prohibited, self-regulated and regulated. The Russian approach was changed from self-regulated to regulated with the entry into force of new laws from January 1, 2020. In Republic of Belarus crowdfunding is still self-regulated. Crowdfunding is considered by the authors as a promising financial technology that contributes to sustainable development and economic growth.

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Saiti, Buerhan, Muhibullah Afghan, and Nazrul Hazizi Noordin. "Financing agricultural activities in Afghanistan: a proposedsalam-based crowdfunding structure." ISRA International Journal of Islamic Finance 10, no. 1 (June 19, 2018): 52–61. http://dx.doi.org/10.1108/ijif-09-2017-0029.

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PurposeThis study aims to explore the potentials of adoptingsalam-based crowdfunding for financing the agricultural sector in Afghanistan.Design/methodology/approachIt adopts a triangulation approach, consisting of a number of methods used in gathering relevant information about Afghanistan’s agricultural sector, the concept of crowdfunding andsalam(forward sale) contract. These methods include library research, reviewing documents provided by Afghanistan’s banks and semi-structured interviews with Islamic finance experts.FindingsThis study finds thatsalam-based crowdfunding is a viable Sharīʿah-compliant investment platform, which may offer some advantages for both potential investors and farmers or entrepreneurs.Originality/valueThe novelty of this paper lies in the proposed structure ofsalam-based crowdfunding.

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Hobbs, Jake, Georgiana Grigore, and Mike Molesworth. "Success in the management of crowdfunding projects in the creative industries." Internet Research 26, no. 1 (February 1, 2016): 146–66. http://dx.doi.org/10.1108/intr-08-2014-0202.

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Purpose – Crowdfunding has become a significant way of funding independent film. However, undertaking a campaign can be time consuming and risky. The purpose of this paper is to understand the predictors likely to produce a film campaign that meets its funding goal. Design/methodology/approach – This study analyses 100 creative crowdfunding campaigns within the film and video category on crowdfunding website Kickstarter. Campaigns were analysed in relation to a number of variables, followed by a discriminant analysis to highlight the main predictors of crowdfunding success. Findings – This study finds key predictors of crowdfunding success and investigates differences between successful and failed crowdfunding campaigns. The attributes of these predictors lead us to question the long-term ability of crowdfunding to aid companies poorer in terms of time, financial and personnel resources, and therefore arguably in the greatest need of crowdfunding platforms. Practical implications – The findings provide insight to practitioners considering the crowdfunding approach and offers knowledge and recommendations so as to avoid what can be naïve and costly mistakes. The findings highlight that crowdfunding should not be considered lightly and can be a considerable investment of resources to be successful. Originality/value – The analysis of crowdfunding campaigns provides details on the significant predictors of crowdfunding success particularly relevant to creative campaigns. The findings provide a critique of previous claims about the benefit of crowdfunding for creative SMEs.

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Kazachenok, O. P. "Raising investments on the investment platforms (crowdfunding): directions of development of legal regulation." Courier of Kutafin Moscow State Law University (MSAL)) 1, no. 8 (October 13, 2020): 74–85. http://dx.doi.org/10.17803/2311-5998.2020.72.8.074-085.

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Li, Xuechun, Yuehuan Tang, Ningrui Yang, Ruiyao Ren, Haichao Zheng, and Haibo Zhou. "The value of information disclosure and lead investor in equity-based crowdfunding." Nankai Business Review International 7, no. 3 (August 1, 2016): 301–21. http://dx.doi.org/10.1108/nbri-01-2016-0002.

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Purpose How to free the potential power of the capital market while simultaneously protecting the investors is critical in equity-based crowdfunding. To realize these goals, the purpose of this study was to investigate the value of information disclosure and leader-follower mechanism which have been widely adopted by crowdfunding platforms. Design/methodology/approach Based on the Elaboration Likelihood Model (ELM), a research framework was developed. Then, the authors conducted an in-depth exploratory empirical study of Dajiatou (www.dajiatou.com) which is a typical equity-based crowdfunding service provider in China. Independent-samples t-test and linear regression were used to uncover the value of project information disclosure and the lead investor in terms of fundraising performance improvement. Findings First, the quality of entrepreneurial team information, especially the ratio of full-time staff, staff number and enterprise business age, significantly improve fundraising performance. Second, entrepreneurs’ behaviors, including project updates and project video, play important roles in crowdfunding. Third, whether or not the project has a lead investor, leader’s credibility information and his/her advocacy behaviors – percentage of their investment, identity certification, investment experience and comments for projects – are important factors affecting fundraising performance. Research limitations/implications The authors are one of the firsts to apply ELM to investigate the effects of diverse information on fundraising performance in equity-based crowdfunding. The value of lead investor which has been ignored in prior research was studied through second-hand data. Practical implications First, an equity-based crowdfunding platform should request the entrepreneur to disclose project quality-related information with more details. Second, crowdfunding platforms should set a high qualifications level for lead investor, and limit the lead investor’s committed percentage in a specific project. Originality/value This paper extended the research in crowdfunding by uncovering the value of information disclosure and lead investor based on ELM theory.

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STARODUBTSEVA, Elena B., and Marina B. MEDVEDEVA. "Crowdfunding as a modern form of financing." Finance and Credit 27, no. 1 (January 28, 2021): 22–40. http://dx.doi.org/10.24891/fc.27.1.22.

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Subject. The article considers the specifics of crowdfunding as a digital platform, on which basis participants attract and invest funds in the global financial market, as well as the relationships between the participants of this process. Objectives. We focus on positive and negative features of crowdfunding as a financial innovation, its place and role in modern investment activities. Methods. The study draws on methods of logical, statistical analysis and synthesis, and comparative analysis techniques. Results. The performed analysis of relevant works enabled to define the concept of crowdfunding, crowdfunding platform, show advantages and disadvantages of this type of financing, identify its functions, and make a comparative analysis of modern forms of financing, such as venture capital financing, business angels, and crowdfunding. The paper highlights and analyzes the participants of the crowdfunding process, the forms of income, the main subtypes of crowdfunding, depending on the forms of generated income, crowdinvesting in particular. Conclusions. Crowdfunding, as a platform for attracting funds, is possible only if there is public confidence in the financial and banking system, and stable development of the economy. On the other hand, there should be trust and reliable cooperation between all participants of this process.

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Journal articles on the topic 'Investment crowdfunding'

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