Success factors in reward based and equity based crowdfunding in Finland

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dc.contributor Aalto-yliopisto fi
dc.contributor Aalto University en Paakkarinen, Pilvi 2016-06-14T06:01:08Z 2016-06-14T06:01:08Z 2016
dc.description.abstract Finding funding is a key hurdle for small ventures and businesses. Crowdfunding has emerged as an alternative option alongside traditional funding options in the past decade. Crowdfunding refers to soliciting funds from a large group of people often through the Internet. The raised capital is often formed from numerous small contri-butions. In academic literature both entrepreneurs and funders were found to have heterogenic motivations for participating in crowdfunding. Entrepreneurs partake in order to raise funds for their business as well as to find validation for ideas and to verify demand for their offering. Funders' motivations for contributing to crowdfunding include supporting a cause or seeking financial returns. Crowdfunding projects have been found to fall into four models: donation, reward, lending and equity based crowd-funding - based on the type of compensation funders receive for their contribution. Earlier research indicates that project type, entrepreneur background, social network, timing and duration, information sharing, geography and other crowdfunding pro-jects all affect the success of crowdfunding initiatives. A study aimed at identifying success factors in crowdfunding in a Finnish setting was conducted in this Thesis using data from online sources and five interviews. Inter-views were held with three reward-based and two equity-based crowdfunding entre-preneurs. The study results support especially indications that project type, social networks and information sharing impact the success of a crowdfunding project. Contrarily, entrepreneur background did not seem to affect crowdfunding success as much as previously thought. By utilizing a wide social network and providing a captivating narrative, entrepre-neurs can attract interest in their crowdfunding project. Herding behavior of funders can draw in further contributions, increasing the success rate of the crowdfunding project. en
dc.format.extent 89
dc.format.mimetype application/pdf en
dc.language.iso en en
dc.title Success factors in reward based and equity based crowdfunding in Finland en
dc.type G2 Pro gradu, diplomityö fi Kauppakorkeakoulu fi School of Business en
dc.contributor.department Tieto- ja palvelutalouden laitos fi
dc.contributor.department Department of Information and Service Economy en
dc.subject.keyword crowdfunding
dc.subject.keyword social network
dc.subject.keyword crowdfunding project
dc.subject.keyword funder motivation
dc.identifier.urn URN:NBN:fi:aalto-201609083459
dc.type.dcmitype text en
dc.programme.major MSc program in Information and Service Management fi
dc.programme.major MSc program in Information and Service Management en
dc.type.ontasot Pro gradu tutkielma fi
dc.type.ontasot Master's thesis en
dc.subject.helecon tietotalous
dc.subject.helecon knowledge economy
dc.subject.helecon rahoitus
dc.subject.helecon financing
dc.subject.helecon joukkorahoitus
dc.subject.helecon crowdfunding
dc.subject.helecon menestyminen
dc.subject.helecon success
dc.subject.helecon projektit
dc.subject.helecon projects
dc.subject.helecon verkostot
dc.subject.helecon networks
dc.ethesisid 14424 2016-04-06
dc.location P1 I

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