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Web 2.0 as Platform for the Development of Crowdfunding

In: Crowdfunding for SMEs

Author

Listed:
  • Federico Brunetti

    (University of Verona)

Abstract

Crowdfunding is a recent development that has changed the way start-up business are created and funded, as well leading to investment opportunities and boosting related markets. In a broad perspective, the consequences of crowdfunding for the organisation and functioning of economic activity in general are potentially significant and largely unexplored. Indeed, if crowdfunding continues to expand, the whole system of production and distribution could change. This possibility is not, however, considered here. The internet and so-called Web 2.0 enabled crowdfunding to develop. To understand crowdfunding in more than its technical and financial aspects it is therefore necessary to have a notion of the logic, instruments and background of online technologies. Accordingly, we first consider the general features of Web 2.0 as an individual and collective environment for communication and interaction. We then describe crowdfunding and the features of Web 2.0 in relation to crowdfunding, defining the participants, information and financial flows and the objects exchanged. We also discuss the consequences of this new form of collective funding-investment and conclude with some questions to stimulate reflection about theoretical and practical aspects.

Suggested Citation

  • Federico Brunetti, 2016. "Web 2.0 as Platform for the Development of Crowdfunding," Palgrave Macmillan Studies in Banking and Financial Institutions, in: Roberto Bottiglia & Flavio Pichler (ed.), Crowdfunding for SMEs, chapter 3, pages 45-60, Palgrave Macmillan.
    • Handle: RePEc:pal:pmschp:978-1-137-56021-6_3
    DOI: 10.1057/978-1-137-56021-6_3
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