Crowdfunding is a process of raising funds through a web-based application or website from a group of individuals and organizations. Crowdfunding is an innovative method where contributors provide financial backing to business proposals or ideas in return for monetary or non-monetary benefits. Crowdfunding has replaced the traditional financial arbitrators and agents who were helping to match investors with fundraisers while charging some commission. Crowdfunding is an open call on the internet through a recognized platform to finance a new entrepreneurial project. Crowdfunding has four types: equity-based, lending-based, reward-based, and donation-based crowdfunding. Equity-based crowdfunding emerged as a new means of raising finance for businesses and start-ups, but the risks associated are the same. Lending-based crowdfunding provides a platform for startups and business firms to acquire a loan from the public at a fixed interest rate and most of the crowdfunding projects are lending-based. Donation-based crowdfunding is a charitable deed where the supporter does not get any intangible and physical return. Reward-based crowdfunding pledges funds from individuals and organizations in return for the delivery of products produced (sometimes customized).
There are three players in crowdfunding process- fundraisers, funders or backers and crowdfunding platform. The fundraisers post the project or cause on the platform and calling people to contribute towards the campaign. The main and only source of funding comes from backers; therefore their intention to contribute to the campaign is point of exploration. The thesis has examined the intention of people in donation-based and reward-based crowdfunding. In the first study, the intentions of people in India to contribute to political crowdfunding (donation-based) have been examined. In the second study, the population of study is Europe and Asia, were we examined the intention to participate in creative crowdfunding projects like movies and web series in return of the reward (reward-based crowdfunding). The third study focuses on the COVID-19 pandemic and intentions of people from some south Asian countries are investigated to contribute to medical crowdfunding of people who are unable to pay hospital bills during the pandemic.
The results of the thesis signal that the future and prospects of crowdfunding is good, and people have positive intentions towards it. Although the factors which induce people to contribute in a project vary from one form of crowdfunding to another, hence, it is important for fundraisers and crowdfunding platforms to understand the factors which will help them to get maximum funding to a particular form of crowdfunding like reward-based medical crowdfunding or donation based political crowdfunding.