Management of Engineering and Technology
New business enterprises -- Management, New business enterprises -- Funding, Crowd funding -- Evaluation, Social media, Kickstarter.com
This paper looks into the emerging realm of social media and crowd funding as a viable option for start-up funding. A literature review revealed a key gap area where traditional funding methods are ill-suited (between personal/private funding and more commercial investors seeking a profit) but showed a relative lack of published information on crowd funding, likely because the concept is only a few years old. Five interviews were given with the leads of several start-up projects: three who used crowd funding through Kickstarter, a successful online start-up itself, and two who used traditional methods. These interviews were used to analyze what makes a project appropriate for crowd funding, the strengths and limitations of the platform, and what side benefits like market research and customer engagement entrepreneurs can expect to gain by using this method. Future work could include a quantitative decision model to choose the best funding method for any given project.
Bahrini, Sara; Gibson, Elizabeth; Jahromi, Shabnam R.; Javadi, Kayvan; Natarajan, Rupha; and Nickeson, Matt, "A Study on Crowd Funding via Social Media and its Differences from Traditional Funding Methods" (2012). Engineering and Technology Management Student Projects. 304.