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13. Crowdfunding in Social Finance

  • 2025
  • OriginalPaper
  • Chapter
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Abstract

This chapter explores how crowdfunding meets key needs in social finance, including access to capital, community building, and legitimacy. It provides an overview of different crowdfunding models that align with social enterprise (SE) goals, such as donation-based, reward-based, equity-based, and debt-based crowdfunding. The text discusses the benefits of crowdfunding for SEs, including lower barriers to entry, flexible financing options, and the ability to build a support network. It also highlights the challenges and limitations of crowdfunding in social finance, such as illiquidity in equity-based crowdfunding, information asymmetry, moral hazard, regulatory barriers, and market saturation. The chapter concludes by exploring future directions for crowdfunding in social finance, including the role of blockchain technology, hybrid crowdfunding models, and the potential involvement of institutional investors. It emphasizes the need for supportive policy frameworks and standardized metrics to enhance investor confidence and ensure the continued growth of crowdfunding as a viable tool in social finance.

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Title
Crowdfunding in Social Finance
Authors
Nishanth Bhimireddy
Yannis Pierrakis
Copyright Year
2025
DOI
https://doi.org/10.1007/978-3-031-99906-2_13
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