It Is Not All About Money: Obtaining Additional Benefits Through Equity Crowdfunding
Material type: TextDescription: 270-294 pSubject(s): In: MISRA, SASI JOURNAL OF ENTREPRENEURSHIPSummary: Equity crowdfunding allows entrepreneurs to directly access financing from a large number of investors via Internet platforms. Recent research has started to examine additional, non-financial benefits of crowdfunding campaigns. This article connects to this emerging research stream by investigating these additional benefits while discussing their potential to contribute to the success of equity crowdfunding projects. Building on interviews with entrepreneurs and investors from Norway and Israel, we find that the benefits offered by investors to entrepreneurs can be divided into two categories: inward benefits and outward benefits. The latter are aimed at increasing public exposure and advancing the project’s success by recruiting additional investors. By contrast, inward benefits are implemented through investors’ contributions of personal experience and expertise. These benefits are aimed at the entrepreneurs and, when harnessed, can become resources that advance future success. We also find that investors receive personal gain by participating in crowdfunding, which takes the form of personal growth and the development of social capital. These benefits are based on intrinsic motives and complement the financial returns, which are more related to extrinsic motives.Item type | Current library | Call number | Vol info | Status | Notes | Date due | Barcode | Item holds | |
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Journal Article | Main Library | Vol 28, No 2/ 55511090JA4 (Browse shelf(Opens below)) | Available | 55511090JA4 | |||||
Journals and Periodicals | Main Library On Display | JOURNAL/ENTR/Vol 28, No 2/55511090 (Browse shelf(Opens below)) | Vol 28, No 2 (01/10/2019) | Not for loan | September, 2019 | 55511090 |
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Vol 28, No 2/ 55511090JA1 Passion and Performance in Entrepreneurial Contexts: An Interest-based Approach | Vol 28, No 2/ 55511090JA2 A Bibliometric Analysis of Franchising Research | Vol 28, No 2/ 55511090JA3 Social Capital Versus Cultural Capital Determinants of Entrepreneurship: An Empirical Study of the African Continent | Vol 28, No 2/ 55511090JA4 It Is Not All About Money: Obtaining Additional Benefits Through Equity Crowdfunding | Vol 28, No 2/ 55511090JA5 Social Networking and Opportunity Recognition: A Focus on Internationalised Firms in South Africa | Vol 28, No 2/ 55511090JA6 Perception of Entrepreneurial Ecosystem: Testing the Actor–Observer Bias | Vol 29 / BV-207 Journal of accounting and finance - Vol 29 |
Equity crowdfunding allows entrepreneurs to directly access financing from a large number of investors via Internet platforms. Recent research has started to examine additional, non-financial benefits of crowdfunding campaigns. This article connects to this emerging research stream by investigating these additional benefits while discussing their potential to contribute to the success of equity crowdfunding projects. Building on interviews with entrepreneurs and investors from Norway and Israel, we find that the benefits offered by investors to entrepreneurs can be divided into two categories: inward benefits and outward benefits. The latter are aimed at increasing public exposure and advancing the project’s success by recruiting additional investors. By contrast, inward benefits are implemented through investors’ contributions of personal experience and expertise. These benefits are aimed at the entrepreneurs and, when harnessed, can become resources that advance future success. We also find that investors receive personal gain by participating in crowdfunding, which takes the form of personal growth and the development of social capital. These benefits are based on intrinsic motives and complement the financial returns, which are more related to extrinsic motives.
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