Acquiring Capital: How useful is crowdfunding as a tool for acquiring capital for early-stage companies and entrepreneurs?

Abstract

Crowdfunding is a new and growing phenomenon within the field of economics. As a new relatively new method for raising funds, limited literature exist on the subject, and the underlying mechanisms and its impact on traditional methods for raising funds is not entirely understood. This thesis examines its overall usefulness as a tool for acquiring capital for early-stage companies and entrepreneurs in Stavanger, Rogaland. This thesis has primarily been based on data collected among relevant actors within the entrepreneurial landscape of Stavanger. Experiences and findings from these actors have been presented and discussed, and similarities has been identified between the various responses. From the findings, it’s indicated that crowdfunding sees little application and successful completion within the entrepreneurial landscape of Stavanger. This thesis concluded by asserting the importance of the identified characteristics as a deciding factor for whether the application of crowdfunding is useful for an entrepreneur. It proposes that the nature of the entrepreneur and their business, knowledge and experience of crowdfunding, marketing and awareness of the service and the entrepreneurial landscape and its culture are important factors influencing its overall usefulness as a tool for acquiring capital. In conclusion, the researcher finds little evidence for significant usefulness among early-stage companies and entrepreneurs in Stavanger, Rogaland.