Crowdfunding in Malta : factors that influence creation and funding of crowdfunding campaigns

Abstract

This thesis aims to analyse the motivations and deterrents of funders or creators of crowdfunding campaigns. From the perspective of the creator of a crowdfunding campaign it is imperative to understand the motivational forces that affect potential funders to pledge funds to help raise money for the success of a project. From the point of view of the possible funder it is interesting to understand why creators turn to crowdfunding platforms onto which to display their idea/project and request funds for it. This study takes a look at existing research on the topic, whilst backing it up with stand-alone theories of motivation and trust. The method of research used is semi-structured interviews from which motivation and deterrents for creating and/or funding crowdfunding campaigns was analysed. The results obtained from nine interviewees reinforce the findings obtained from past studies as well as highlighting a few points which help give a stronger understanding of what drives people to donate to or create crowdfunding campaigns as well as what holds them back. Motivations for funders include supporting youths in their endeavours and backing up campaigns for products in order to become early adopters of it. Creator motivations consist of having a whole community supporting a project and being in total control of the presentation of an idea, bypassing corporate adherence. Deterrents for funders include funding projects for rewards which take a long time to arrive and for creators, having to spend a lot of time and effort presenting an idea. Crowdfunding in Malta has still a long way to go and specific studies targeting specific users could give a clearer picture of the way ahead for what works best when targeting a Maltese audience.