Drivers of the Crowd - Identifying the Key Motivators to Perform Equity-Based Crowdfunding Investments

Abstract: This thesis aims to investigate the key motivators that drive investors to engage in equity-based crowdfunding in Sweden. By drawing on the Self-Determination Theory (SDT) and other findings within this field of study, a model has been developed in order to understand what motivates investors to invest in equity-based crowdfunding campaigns. Furthermore, the differences between intrinsic motivation and extrinsic motivation have been studied in regard to the number of crowdfunding investments. A survey including 134 respondents was conducted and distributed to investors on the leading Swedish crowdfunding platform, FundedByMe. The study confirmed that investors within equity-based crowdfunding are mainly driven by intrinsic motivation rather than extrinsic motivation. Enjoyment-based motivation has further been identified as the most influencing motivational factor within intrinsic motivation and delayed payoffs within extrinsic motivation. In addition, the study also concluded that investors who are strongly motivated by both intrinsic motivation and extrinsic motivation tend to invest in more equity-based crowdfunding campaigns compared to investors who are strongly motivated by either intrinsic motivation or extrinsic motivation.