A post about crowdfunding and its potential for stimulating economic growth.

Outline

Introduction
Brief History of Crowdfunding
Success and Failure:
1. Statistics about success and failure rates
2. Keys to success
Potential for economic growth
1. Do entrepreneurs really benefit from it?
Policy suggestions:
1. Loosen or strengthen policies
2. Legal risks of investing in or using crowdfunding
Conclusion

Resources

http://www.sciencedirect.com/science/article/pii/S0883902613000694
“It suggests that crowdfunding projects mostly succeed by narrow margins, or else fail by large amounts.” - http://www.sciencedirect.com/science/article/pii/S088390261300058X
Policy consequence- allow crowdfunding with less regulation - https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1916184
A study of quality of crowdfunding websites and posts: http://www.sciencedirect.com/science/article/pii/S088390261300058X
- “for entrepreneurs who seek crowdfunding, there are some clear lessons. First, project quality is important, and entrepreneurs should look for ways to signal preparedness. Social network ties have also been found to be important in crowdfunding, both in this study and in others (Agrawal et al., 2010). Second, appropriate goals are those that allow a founder to deliver a product on time; achieving significantly more funding than requested is rare. Most importantly, careful planning is required both to set these goals and to prepare for a crowdfunding success, which will entail a need to rapidly execute a promised venture.”