ABSTRACT
In this study,we derive characteristics of individual crowdfunding practices bymeans of hand-collected data of 44 initiatives and thenwe examine drivers of fundraising success.We deliberately excluded initiatives launched using crowdfunding platforms since they have received greater attention in the literature (see, e.g., Agrawal, Catalini, and Goldfarb 2011; Hildebrand, Puri, and Rocholl 2011). In our context, individual crowdfunding practices relate to practices in which entrepreneurs do not make use of a ‘structured’ crowdfunding platform – such asKickstarter,RocketHub, IndieGoGo,MyMajorCompany, andProsper – to fund their venture. In such platforms, the process of raising funds is standardized, in
CROWDFUNDING AND ENTREPRENEURIAL FINANCE
contrast to individual initiatives where entrepreneurs can shape the process according to their specific needs.Aswill become clear below, this enables entrepreneurs to offer a greater variety of compensation to the crowd, including active involvement into the process itself.
