Where is the crowd?

Abstract

Crowdfunding has received increasing attention in the financial services space in the past few years. This is because crowdfunding has become a viable alternative to traditional capital investment and thus a threat to investors in that sector. Various platforms exist which allow fundraisers to pitch an idea and spread awareness with the intention of acquiring backers. Most backers of crowdfunding campaigns come to the platform with the fundraiser rather than from the platform itself [25]. Fundraisers must find and engage a crowd and not rely on the platform for provision of the crowd. This paper sets out four action design principles for identifying and engaging a crowd. Using a boundary object theory approach, the crowdfunding campaign is broken down based on backer’s social worlds which define the crowd and their interests.