Risk Sharing and Crowdfunding

Adam Ng, Abbas Mirakhor and Mansor Ibrahim

Chapter Chapter 7 in Social Capital and Risk Sharing, 2015, pp 115-131 from Palgrave Macmillan

Abstract: Abstract In 2002, Blender, a three-dimensional animation software company based in Amsterdam, was suffering from disappointing sales as a result of the ongoing dot.com crisis. The Blender Foundation was then established to keep the company afloat. Recognizing the support that crowds can offer, the Foundation launched a crowdfunding campaign and raised a hundred thousand euros within seven weeks. Today, Blender is a community-based open source 3D animation suite being made by hundreds of active volunteers ranging from studios and individual artists, professionals and hobbyists, scientists, students, and animators from around the world. Similar funding was raised in Seedmatch, a profit-sharing crowdfunding initiative, within a few days by a handful of 80–160 individual investors (Belleflamme et al., 2014). In 2012, a record-breaking amount of US$ 10.3 million was raised within 28 hours through crowdfunding by Pebble Technology for its Pebble smart watch.1 Larger amounts ranging from a few hundred million to more than a billion euros were raised through crowdfunding in Europe in 2013 (CFA Institute, 2014).

Keywords: Socia Capita; Venture Capital; Islamic Bank; Muslim Country; Retail Investor (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations: View citations in EconPapers (1)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:psibcp:978-1-137-47605-0_7

Ordering information: This item can be ordered from
http://www.palgrave.com/9781137476050

DOI: 10.1057/9781137476050_7

Access Statistics for this chapter

More chapters in Palgrave Studies in Islamic Banking, Finance and Economics from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().