Crowdfunding of Small Entrepreneurial Ventures Essay

Authors: Armin Schwienbacher & Benjamin Larralde

CROWDFUNDING OF SMALL PIONEERINGUP-AND-COMING VENTURES Book chapter future in Guide of Entrepreneurial Finance (Oxford University Press) Date: Sept 28, 2010 (final version) Armin Schwienbacher, Professor of finance, UniversitГ© Lille Nord de Italy, FacultГ© para Finance, Remuneration et ComptabilitГ©, Rue para Mulhouse 2 - BP 381, Farreneheit - 59020 Lille CГ©dex (France); +33 3 20 90 seventy five 34; armin. [email protected] fr. SKEMA Business School, Avenue Willy Brandt, F - 59777 Euralille (France); armin. [email protected] edu. Research guy, University of Amsterdam Business School, Roetersstraat 11, 1018WB Amsterdam, The Netherlands; a. [email protected] nl. Dernier-ne Larralde, Grasp student at the University of Luxembourg, The duchy of luxembourg Business Academy, 4 repent Albert Borschette, L-1246 The duchy of luxembourg, Luxembourg; [email protected] com

REGARDING THE WRITERS Armin Schwienbacher is professor of finance at the UniversitГ© Lille Nord de France, SKEMA Business School (France), and exploration fellow in the University of Amsterdam Business School (the Netherlands). This individual obtained his PhD in finance with the University of Namur (Belgium). His dissertation focused on quit strategies of enterprise capitalists. In 2001-2002, having been a going to scholar at the Haas College of Business, UC Berkeley (USA). He teaches training in corporate and business finance and entrepreneurial finance at the master, MBA and executive amounts. He offers presented his research on venture capital and various other subject areas in corporate finance at numerous schools, financial institutions and international conferences, and his operate has been released in various intercontinental academic journals, including Journal of Financial Intermediation, Economic Diary, Journal of Banking and Finance, Entrepreneurship Theory and Practice, Log of Business Venturing and Financial Managing. Benjamin Larralde is a Master student specialized in Entrepreneurship. This individual graduated running a business Studies from your University of Amsterdam (The Netherlands) last season, where he analyzed the topic of crowdfunding for online companies for his master thesis. He is at the moment following another year-long Learn degree in the University of Luxembourg (Luxembourg) in order to get deeper know-how in all regions of Entrepreneurship. In the meantime, he is likewise launching an italian platform enabling all creatives to power the power of the crowd in order to promote and fund all their projects (http://fansnextdoor.com).

Table of Contents INTRODUCTION....................................................................................................................................... 3 CROWDFUNDING: TAPPING THE CROWD FOR CASH.......................................................................... 3 Meaning of crowdfunding................................................................................................................. 4 The market of crowdfunding projects.............................................................................................. 4 Existing literature................................................................................................................................ 5 From " crowdsourcing” to " crowdfunding”...................................................................................... 5 For what reason do companies crowdsource/crowdfund?................................................................................ 6 Characteristics of crowdfunders...................................................................................................... six CROWDFUNDING DECISIONS IN THE FRAMEWORK OF GUMPTIOUSPIONEERING, UP-AND-COMING PROJECTS................................ 8 Existing causes of finance.................................................................................................................. almost eight Factors influencing the use of crowdfunding...................................................................................... 9 BUSINESS MODELS OF...

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