Crowdfunding and Venture Success – A Study of Approaches for Increasing Success in the Crowdfunding Method for Businesses

Topic 

Crowdfunding and Venture Success – A Study of Approaches for Increasing Success in the Crowdfunding Method for Businesses

Instructions 

Write a dissertation paper on Crowdfunding and Venture Success – A Study of Approaches for Increasing Success in the Crowdfunding Method for Businesses

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Crowdfunding is a new method that new business ventures can use to raise capital.  The approach remains an understudied concept, which limits the extent and scope of adoptions by entrepreneurs, as it may be unclear how the method can be applied in raising capital in the real world. The purpose of this study is to investigate the challenges that arise when adopting crowdfunding, as well as the best practices and methods that may be implemented to ensure the successful venture financing using the method. The study was conducted using structured interviews to collect data from five management-level employees from Kickstarter and Indiegogo. The findings indicate that multiple issues such as the possible theft of ideas and challenge of earning the trust of backers affect crowdfunding and threaten to render it ineffective unless addressed. 10 best practices that include copyrighting the ideas, communicating effectively, building and maintaining trust among the backers, promoting the crowdfunding campaign, among others that can be adopted to optimize crowdfunding are reported based on the detailed interviews. It is recommended that entrepreneurs identify the relevant best practices in their crowdfunding campaigns and integrate them properly to circumvent the challenges of the funding model to optimize their outcomes.

Word Count; 8200