It’s not all About Money: the Collateral Benefits of Crowdfunding

Purpose Crowdfunding (CF) is a fast-developing and multifaceted phenomenon which is changing the entrepreneurial landscape, with implications in areas such as finance, sociology, and management. Although it is basically an alternative way to fund innovative projects using the potentiality of Internet, many scholars agree that CF can provide great value other than money. Nevertheless, only few studies have been realized to shed light on how a CF campaign can help in practice the evolution of an entrepreneurial initiative. In such scenario, this article aims to build an integrative model and a taxonomy to classify the additional benefits of CF for the successful undertaking and sustainability of the entrepreneurial process. Design/methodology/approach Based on a systematic review of CF and entrepreneurship literature, the potential benefits of CF are defined and grouped in different areas and categories, according to their nature and level of specificity. After several iterations, where duplications, mismatched and nonsense have been deleted or adapted, a framework with a standard taxonomy has been draft. Findings The model proposed testifies that CF is much more than a funding instrument. Several areas of benefits have been identified for the project, the start-up and the creator itself, such as viability, cost reduction, market research, product design, demand and customer relationship. Research limitations/implications Interesting implications can be derived for CF platforms managers, when designing tools for improving the platform performance and attractiveness and for project creators and consultants, when deciding the characteristics of a campaign according to their needs. Future researches can focus on the determinants of these benefits and try to operationalize the latter, in order to measure the effectiveness of the campaign according to prearranged objectives. The empirical validation of some benefits and the study of the relationship between benefits and project characteristics or platform type can be further follow-up investigations. Originality/value The theoretical framework obtained wants to be an exhaustive snapshot of the benefits that have been related to a CF campaign so far, categorized in different areas according to their characteristics. The outcome of this analysis represents a starting point for future researches on the benefits of CF for project creators and start-ups.