Location

260-051, Owen G. Glenn Building

Start Date

12-15-2014

Description

Due to the recent popularity of crowdfunding, a broad magnitude of crowdfunding intermediaries has emerged, while research on crowdfunding intermediaries has been largely neglected. As a consequence, existing classifications of crowdfunding intermediaries are conceptual, lack theoretical grounding, and are not empirically validated. Thus, we develop an empirical taxonomy of crowdfunding intermediaries, which is grounded in the theories of two-sided markets and financial intermediation. Integrating these theories, we develop a crowdfunding intermediation model that we use as foundation for performing cluster analysis with data of 127 intermediaries. We identify three generic archetypes of crowdfunding intermediaries, which differ in their value proposition: Hedonism, Altruism, and For Profit. Our crowdfunding intermediation model and our empirical taxonomy improve our understanding of crowdfunding by showing how crowdfunding intermediaries manage financial intermediation and digitally transform exchange relations between capital-giving and -seeking agents in two-sided online markets. For practice, our research may help characterize the crowdfunding industry.

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Dec 15th, 12:00 AM

An Empirical Taxonomy of Crowdfunding Intermediaries

260-051, Owen G. Glenn Building

Due to the recent popularity of crowdfunding, a broad magnitude of crowdfunding intermediaries has emerged, while research on crowdfunding intermediaries has been largely neglected. As a consequence, existing classifications of crowdfunding intermediaries are conceptual, lack theoretical grounding, and are not empirically validated. Thus, we develop an empirical taxonomy of crowdfunding intermediaries, which is grounded in the theories of two-sided markets and financial intermediation. Integrating these theories, we develop a crowdfunding intermediation model that we use as foundation for performing cluster analysis with data of 127 intermediaries. We identify three generic archetypes of crowdfunding intermediaries, which differ in their value proposition: Hedonism, Altruism, and For Profit. Our crowdfunding intermediation model and our empirical taxonomy improve our understanding of crowdfunding by showing how crowdfunding intermediaries manage financial intermediation and digitally transform exchange relations between capital-giving and -seeking agents in two-sided online markets. For practice, our research may help characterize the crowdfunding industry.