5 Reducing the risk of information asymmetry in crowdfunding
Learning objectives
- Discuss the meaning of information asymmetry
- Discuss the challenges of information asymmetry on crowdfunding
- Explore how information asymmetry can be mitigated to achieve crowdfunding success
- Examine the role of feedback in resolving information asymmetry in crowdfunding
Introduction
In recent years, crowdfunding has become a veritable source of finance for entrepreneurship, providing entrepreneurs the opportunity to draw on small contributions from a large number of people (the crowd) through the internet to fund their ventures (Belleflamme et al. 2014). This new source of entrepreneurial finance has started an expanding academic ...
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