Crowdfunding Platforms Dynamics

This chapter compares two national crowdfunding markets based on their platforms and regulatory legislation on crowdfunding. Spain and France were selected though a cluster analysis since both differ on those characteristics. Mean comparison tests were carried out to estimate differences. Data were based on a survey specifically designed and conducted for this research. While crowdfunding is an internet-powered activity with global accessibility, national boundaries and geographic proximity play a significant role in shaping the performance of crowdfunding platforms. Regarding practical implications, as each country developed its specific legislation, it is concluded that this legislation may boost or hinder the growth of crowdfunding. On the other hand, the different way platforms managed their business does not affect their outcomes in terms of number of projects and funds raised. As a result, although platforms are indispensable as an intermediate agent between funders and investors, they determine neither the number of projects hosted nor the funds raised.

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