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Choose wisely: Crowdfunding through the stages of the startup life cycle
KTH.
2017 (English)In: Business Horizons, ISSN 0007-6813, E-ISSN 1873-6068, Vol. 60, no 2, p. 179-188Article in journal (Refereed) Published
Abstract [en]

Crowdfunding is attractive to startups as an alternative funding source and offers nonmonetary resources through organizational learning. It encompasses the outsourcing of an organizational function, through IT, to a strategically defined network of actors (i.e., the crowd) in the form of an open call specifically, requesting monetary contributions toward a commercial or social business goal.. Nonetheless, many startups are hesitant to consider crowdfunding because little guidance exists on how the various types of crowdfunding add value in different life cycle stages and which type is best suited for which stage. In response to this gap, this article introduces a typology of crowdfunding, the benefits it offers, and how specific benefits relate to the identified crowdfunding types. On this basis, we present a framework for choosing the right crowdfunding type for each stage in the startup life cycle, in addition to providing practical advice on crowdfunding best practices. The best practices outlined have shown demonstrable contributions toward achieving funding goals and are likely to prove valuable for startups.

Place, publisher, year, edition, pages
Elsevier, 2017. Vol. 60, no 2, p. 179-188
Keywords [en]
Crowdfunding, Startup funding, Crowdsourcing, Crowd capital, Information asymmetry, Crowd communication, Startup strategy
National Category
Economics and Business
Identifiers
URN: urn:nbn:se:kth:diva-205497DOI: 10.1016/j.bushor.2016.11.003ISI: 000398009000004Scopus ID: 2-s2.0-85008192143OAI: oai:DiVA.org:kth-205497DiVA, id: diva2:1098498
Note

QC 20170524

Available from: 2017-05-24 Created: 2017-05-24 Last updated: 2017-05-24Bibliographically approved

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CiteExportLink to record
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Citation style
  • apa
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  • vancouver
  • Other style
More styles
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  • de-DE
  • en-GB
  • en-US
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  • nn-NB
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  • Other locale
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Output format
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