Crowd funders’ motivations to support impact-oriented projects

Abstract

ABSTRACT Alternative methods of financing are increasingly popular in Switzerland and project creators are turning to models like crowdfunding to get funding from a group of individuals, rather than investors. Semistructured interviews were conducted with experts from various backgrounds to better understand the importance of the crowdfunding model when assessing the crowd’s motivation to support impact-oriented projects. This study uncovers the segmentation of crowdfunding models into two categories and the implications for crowdfunding campaigns in each one. Reward and donation-based campaigns must highlight their projects’ positive impacts on society, relative to environmental and social aspects, while equity and lending-based campaigns must emphasize financial criteria, such as the return on investment they can generate for their backers.