Crowdfunding: a evolutionary financing?

Abstract

Crowdfunding is a collective financing tool that has gained notoriety in recent years. Among its qualities, it allows contributors easy access to data from previous projects, which tends to reduce the information asymmetry and thereby provide greater certainty for projects. As this is a mechanism that, in a way, breaks the paradigm of traditional financing, it is quite relevant in evolutionary economics studies. Other factors that make the intermediation between crowdfunding and evolutionary economics are the adoption of concepts such as structural uncertainty, bounded rationality, decision-making process and expertise. The objective of this study is to evaluate the crowdfunding's potential of selecting projects properly and be an alternative to traditional sources of financing to entrepreneurs.