Deciphering Crowdfunding

Crowdfunding is one of the funding sources that entrepreneurs are increasingly being exposed to above and beyond venture capital and angel funding. After introducing the most popular crowdfunding types, this chapter proceeds to present and compare the evolution of the phenomenon across three macro regions: Europe, USA, and Asia-Pacific. Furthermore, the chapter offers an overview of the state-of-the-art of the crowdfunding literature, highlighting creators' and funders' incentives and disincentives for starting or engaging in crowdfunding projects, the characteristics of a successful campaign, and the contextual factors that explain the evolution of the phenomenon across countries. The chapter closes providing suggestions for future work in this area.