Journal Search Engine
Search Advanced Search Adode Reader(link)
Download PDF Export Citaion korean bibliography PMC previewer
ISSN : 2233-4165(Print)
ISSN : 2233-5382(Online)
Journal of Industrial Distribution & Business Vol.10 No.4 pp.25-31

A framework for Crowdfunding platforms to match services between funders and fundraisers

Baber Hasnan*
* Assistant Professor, Endicott College of International Studies, Woosong University, Daejeon, Korea. E-mail:
February 22, 2019. March 04, 2019. April 05, 2019.


Purpose - A framework is suggested in this paper which will help crowdfunding platforms to match projects according to expectations of funders, leading to successful campaigns and thus increase the profitability of the crowdfunding platform.
Research design, data, and methodology – The paper is theoretical and conceptual in nature which proposes a model for crowdfunding platforms to match expectations of crowds with project fundraisers.
Results - Crowdfunding platforms are going through incremental innovations in order to match customer (funders and fundraisers) expectations. Leading crowdfunding platforms like Kickstart holds benchmark for other players in the market but the secret of success lies in matching quality projects with the appropriate funders. Crowdfunding platforms have to securitize the projects and allow only quality projects but also provide a wide range of options for funders. Thus, to manage this trade-off between quality and quantity of options, a framework is proposed.
Conclusions - Crowdfunding platforms have to adopt a model which will help them in providing a perfect match between crowds and fundraisers. Each member of the crowd and every project will be assigned a category and rating based on the past records. Securitization of projects will help to entertain only demanded projects which will reduce the number of failing campaigns.

JEL Classifications: G40, P20, P43





    1. Agrawal, A. K., Catalini, C., & Goldfarb, A. (2011). The geography of crowdfunding (No. w16820). National bureau of economic research.
    2. Agrawal, A. K., Catalini, C., & Goldfarb, A. (2015). Crowdfunding: Geography, social networks, and the timing of investment decisions. Journal of Economics & Management Strategy, 24(2), 253-274.
    3. Allison, T. H., Davis, B. C., Short, J. C., & Webb, J. W. (2015). Crowdfunding in a prosocial microlending environment: Examining the role of intrinsic versus extrinsic cues. Entrepreneurship Theory and Practice, 39(1), 53-73.
    4. Alonso, I. M. (2015). Crowdfunding in Islamic finance and microfinance: A case study of Egypt. Access to Finance and Human Development—Essays on Zakah, Awqaf and Microfinance, 85.
    5. Amuna, Y. M. A. (2019). Crowdfunding Financing Model effect on Entrepreneurship Aspirations.
    6. Andreoni, J. (1989). Giving with impure altruism: Applications to charity and Ricardian equivalence. Journal of political Economy, 97(6), 1447-1458.
    7. Austin, J., Stevenson, H., & Wei-Skillern, J. (2006). PTE& Social and Commercial Entrepreneurship: Same, Different, or Both?
    8. Aveni, T., & Jenik, I. (2017). Crowdfunding in China: the financial inclusion dimension. CGAP, Washington, 1-4.
    9. Baber, H. (2019a). E-SERVQUAL and Its Impact on the Performance of Islamic Banks in Malaysia from the Customer’s Perspective. Journal of Asian Finance, Economics and Business,6(1), 169-175.
    10. Baber, H (2019b). Impact of FinTech on customer retention in Islamic banks of Malaysia. International Journal of Business and Systems Research, forthcoming.
    11. Baber, H., & Zaruova, C. (2018). Religion and Banking: A Study of Islamic Finance in India. The International Journal of Industrial Distribution & Business, 9(6), 7-13.
    12. Barasinska, N., & Schafer, D. (2014). Is crowdfunding different? Evidence on the relation between gender and funding success from a German peer-to-peer lending platform. German Economic Review, 15(4), 436–452.
    13. Belleflamme, P., Lambert, T., & Schwienbacher, A. (2014). Crowdfunding: Tapping the right crowd. Journal of Business Venturing, 29(5), 585–609.
    14. Berns, J. P., Figueroa-Armijos, M., da Motta Veiga, S. P., & Dunne, T. C. (2018). Dynamics of Lending-Based Prosocial Crowdfunding: Using a Social Responsibility Lens. Journal of Business Ethics, 1-17.
    15. Block, J., Hornuf, L., & Moritz, A. (2018). Which updates during an equity crowdfunding campaign increase crowd participation? Small Business Economics, 50(1), 3-27.
    16. Boitan, I. A. (2016). Crowdlending and Financial Inclusion Evidence from EU Countries. Economic Alternatives Journal, (4), 418-432
    17. Bradford, S. C. (2012). Crowdfunding and the federal securities law. Columbia Business Law Review, 2012(1), 1–150.
    18. Brüntje, D., & Gajda, O. (2016). Crowdfunding in Europe. State of the Art in Theorey and Practice.
    19. Bruton, G., Khavul, S., Siegel, D., & Wright, M. (2015). New financial alternatives in seeding entrepreneurship: Microfinance, crowdfunding, and peer‐to‐peer innovations. Entrepreneurship Theory and Practice, 39(1), 9-26.
    20. Chemla, G., & Tinn, K. (2018). Learning through crowdfunding (SSRN 2796435).
    21. Cumming, D. J., Leboeuf, G., & Schwienbacher, A. (2015). Crowdfunding models: Keep‐it‐all vs. all‐or‐nothing. Financial Management.
    22. Cumming, D. J., & Zhang, Y. (2018). Are crowdfunding platforms active and effective intermediaries?
    23. De Buysere, K., Gajda, O., Kleverlaan, R., Marom, D., & Klaes, M. (2012). A framework for European crowdfunding. European Crowdfunding Network (ECN), Retrieved May 22, 2018, from
    24. De Crescenzo, V. (2016). The role of equity crowdfunding in financing SMEs: Evidence from a sample of European platforms. In Crowdfunding for SMEs (pp. 159-183). London, England: Palgrave Macmillan.
    25. Delivorias, A. (2017). Crowdfundig in Europe: Introduction and state of play. Briefing, European Parliamentary Research Service, European Parliament, 1-8.
    26. Dorfleitner, G., Hornuf, L., Schmitt, M., & Weber, M. (2017). FinTech in Germany. New York, NY: Springer Publishing.
    27. Duarte, J., Siegel, S., & Young, L. (2012). Trust and credit: The role of appearance in peer-to-peer lending. The Review of Financial Studies, 25(8), 2455-2484.
    28. Dushnitsky, G., & Fitza, M. A. (2018). Are we missing the platforms for the crowd? Comparing investment drivers across multiple crowdfunding platforms. Journal of Business Venturing Insights, 10, e00100.
    29. Greenberg, M. D., Pardo, B., Hariharan, K., & Gerber, E. (2013). Crowdfunding support tools: Predicting success & failure. In CHI'13 Extended Abstracts on Human Factors in Computing Systems (pp.1815-1820). ACM.
    30. Harrison, R. (2013). Crowdfunding and the revitalisation of the early stage risk capital market: Catalyst or chimera?
    31. Heminway, J. M., & Hoffman, S. R. (2010). Proceed at your peril: crowdfunding and the securities act of 1933. Tenn. L. Rev., 78, 879.
    32. Hornuf, L., & Schwienbacher, A. (2017). Should securities regulation promote equity crowdfunding? Small Business Economics, 49(3), 579-593.
    33. Jenik, I., Lyman, T., & Nava, A. (2017). Crowdfunding and financial inclusion (CGAP (Consultative Group to Assist the Poor) Working Paper).
    34. Kim, H., & De Moor, L. (2017). The case of crowdfunding in financial inclusion: A survey. Strategic Change, 26(2), 193-212
    35. Kirby, E., & Worner, S. (2014). Crowd-Funding: An Infant Industry Growing Fast. Madrid, Spain: IOSCO. Retrieved December 2018 from research/pdf/swp/Crowd-funding-An-Infant-Industry-Growing-Fast.pdf
    36. Klohn, L., & Hornuf, L. (2012). Crowdinvesting in Deutschland — Markt, Rechtslage und Regulierungsperspektiven. Zeitschrift f€ur Bankenrecht und Bankwirtschaft, 24(4), 237–266.
    37. Koch, J. A., & Siering, M. (2015). Crowdfunding success factors: the characteristics of successfully funded projects on crowdfunding platforms.
    38. Le Tan Phuoc, K. S. K., & Su, Y. (2018). Jensen’s Alpha Estimation Models in Capital Asset Pricing Model. Journal Of Asian Finance Economics And Business, 5(3), 19-29.
    39. Liu, Y.-Y., Nacher, J. C., Ochiai, T., Martino, M., & Altshuler, Y. (2014). Prospect theory for online financial trading. PLoS ONE, 9(10), 1–7.
    40. Macht, S. A., & Weatherston, J. (2015). Academic research on crowdfunders: What's been done and what's to come? Strategic Change, 24(2), 191-205.
    41. Magnuson, W. (2018). Regulating fintech. Vand. L. Rev., 71, 1167.
    42. Martínez-Climent, C., Costa-Climent, R., & Oghazi, P. (2019). Sustainable Financing through Crowdfunding. Sustainability, 11(3), 934.
    43. Massolution, C. L. (2012). Crowdfunding industry report: market trends, composition and crowdfunding platforms (Research Report). Retrieved from www.crowdfunding. nl/wp-content/uploads/2012/05/92834651-Massolution-abridged-Crowd-Funding-Industry-Report1.pdf
    44. McMillan, G. (2013). Veronica Mars KickStarter Breaks Records, Raises Over $2 M in 12 Hours. WIRED.(13, March 12).
    45. Mollick, E. (2014). The dynamics of crowdfunding: An exploratory study. Journal of business venturing, 29(1), 1-16.
    46. Mollick, E. R., & Kuppuswamy, V. (2014). After the campaign: Outcomes of crowdfunding.
    47. Mollick, E. R. (2016). Containing multitudes: The many impacts of Kickstarter funding (SSRN 2808000).
    48. Murphy, M. L. (2018). Startup storytelling: An analysis of narrative in rewards and equity based crowdfunding campaigns (Doctoral dissertation).
    49. Ordanini, A., Miceli, L., Pizzetti, M., & Parasuraman, A. (2011). Crowd-funding: Transforming customers into investors through innovative service platforms. Journal of service management, 22(4), 443-470.
    50. Pichler, F., & Tezza, I. (2016). Crowdfunding as a new phenomenon: Origins, features and literature review. In Crowdfunding for SMEs (pp.5-43). London, England: Palgrave Macmillan.
    51. Roig-Tierno, N., Blasco-Carreras, C., Mas-Tur, A., & Ribeiro-Navarrete, B. (2015). Using crowdsourcing to overcome barriers to women entrepreneurship. In Advances in Crowdsourcing (pp.119-128). New York, NY: Springer Publishing.
    52. Roma, P., Gal-Or, E., & Chen, R. R. (2018). Reward-based crowdfunding campaigns: Informational value and access to venture capital. Information Systems Research, 29(3), 679-697.
    53. Ravina, E. (2012). Love & loans: The effect of beauty and personal characteristics in credit markets (SSRN Working Paper 1101647).
    54. Sauermann, H., Franzoni, C., & Shafi, K. (2019). Crowdfunding scientific research: Descriptive insights and correlates of funding success. PloS one, 14(1), e0208384.
    55. Shahab, Y., Ye, Z., Riaz, Y., & Ntim, C. G. (2019). Individual’s financial investment decision-making in reward-based crowdfunding: Evidence from China. Applied Economics Letters, 26(4), 261-266.
    56. Senadjki, A., Mohd, S., Bahari, Z., & Hamat, A. F. C. (2017). Assets, Risks and Vulnerability to Poverty Traps: A Study of Northern Region of Malaysia. The Journal of Asian Finance, Economics and Business (JAFEB), 4(4), 5-15.
    57. Terry, H., Schwartz, D., & Sun, T. (2015). The Future of Finance Part 3: The Socialization of Finance. New York, NY: Goldman Sachs.
    58. Wahjono, S. I., & Marina, A. (2015). Islamic crowdfunding: Alternative funding solution. Editors, 30.
    59. Wu, W., Huang, X., Li, Y., & Chu, C. C. (2018). Optimal Quality Strategy and Matching Service on Crowdfunding Platforms. Sustainability, 10(4), 1053.
    60. Zvilichovsky, D., Inbar, Y., & Barzilay, O. (2013). Playing both sides of the market: Success and reciprocity on crowdfunding platforms. Paper presented at the International Conference on Information Systems, Milan, Italy