Elizabeth M. Gerber
Abstract
Crowdfunding is changing how, why, and which ideas are brought into existence. With the increasing number of crowdfunded projects, it is important to understand what drives people to either create or fund these projects. To shed light on this new social phenomenon, we present a grounded theory of motivation informed by the first cross-platform qualitative study of the crowdfunding community. By performing 83 semistructured interviews, we uncover creator motivations, which include the desire to raise funds, expand awareness of work, connect with others, gain approval, maintain control, and learn; and supporter motivations, which include the desire to collect rewards, help others, support causes, and be part of a community. We also explore deterrents to crowdfunding participation, including, among creators, fear of failure, and, for supporters, lack of trust. Based on these findings, we provide three emergent design principles to inform the design of effective crowdfunding platforms and support tools.
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Index Terms
- Crowdfunding: Motivations and deterrents for participation
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Reviews
Barrett Hazeltine
This in-depth study of why people create or fund projects online is based on 83 semi-structured interviews with creators, supporters, and people who had decided not to use crowdfunding. Some principal findings follow. Besides raising funds, creators want to expand awareness of their work, connect with others, and gain approval. Creators also want long-term interaction and feedback from supporters. A benefit of crowdfunding for creators is maintaining control, without the constraints imposed by traditional financial institutions. Supporters (funders) participate to expand their social network, to feel they are part of a special community. They also want to support causes and people, be recognized, and collect rewards. Participants appear to be strongly motivated by wanting to learn and to connect with others, beyond the value of the financial transaction. Creators, especially, and supporters want to carry out the project themselves. Supporters value the opportunity to choose projects to fund, to be in control. Three design principles for crowdsourcing are presented: promote interaction between supporters and creators throughout the process; build a community of creators and supporters; and provide transparency about intellectual property restrictions and supporters' preferences and amounts given. The paper is readable and insightful, and will be a useful guide to someone considering a crowdfunding campaign. Online Computing Reviews Service
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