Introduction: In the modern era, securing capital has always been one of the fundamental challenges of entrepreneurship in the early stages of establishing startups, and crowdfunding is one of the effective ways to provide the necessary funding for knowledge-based companies. Crowdfunding is a relatively new method for raising capital for new investments (Giakoumelou et al., 2023), facilitating the collection of funds from the public via the internet (Deng et al., 2022). Crowdfunding is an internet-based financing method used by project founders, enabling individuals to raise funds from the crowd to support their projects (Wan Mohamad Nazarie & Williams, 2021). Crowdfunding can also be referred to as a digital financial innovation that, by bypassing credit crises, banking system rigidities, and capital market limitations, allows new investments and established companies to obtain the necessary funding to support innovations (Linzalone et al., 2023). In essence, crowdfunding is the process of aggregating and distributing relatively small financial contributions from a large number of backers in exchange for equity, debt with returns, or non-financial rewards. In this method, the target community of backers consists of individuals or organizations typically networked through the internet to collectively support other individuals or organizations (Wahjono et al., 2021). Although the primary goal of many studies on crowdfunding is to provide strategies and tools to empower individuals in successfully utilizing crowdfunding so that they can ultimately meet the financial needs of projects through social participation (Böckel et al., 2021a), the success of a crowdfunding campaign depends on numerous factors. The main issue and theoretical gap in this field is how it is adopted by startups. Given this context, the main objective of this research is to answer the following questions: Who are the key players in the successful adoption of crowdfunding in the startup sector? What are the relationships between these key players? Ultimately, what is the appropriate framework for the successful adoption of crowdfunding in the startup sector?
The research results of Mazzocchini and Lucarelli (2023) demonstrate that the outcome of an equity-based crowdfunding campaign is significantly associated with the signals entrepreneurs provide through hard information (company characteristics, financial data, business features, and project details) and soft information (intellectual capital, human capital, social capital, and social media networks). Furthermore, this financing mechanism is accelerated through digital media platforms that facilitate personal interactions between entrepreneurs and investors (Mazzocchini & Lucarelli, 2023). In a complementary finding, Berné-Martínez et al. (2023) revealed that policymakers can effectively influence investor participation through persuasive messaging and by establishing secure crowdfunding ecosystems (Berné-Martínez et al., 2023).
Methodology: The present study adopts a qualitative approach, is developmental in terms of purpose, and descriptive in terms of nature and method. The statistical population of this research consists of experts, managers, and specialists in startups who have either used crowdfunding to finance their businesses or intend to do so. The sampling method in this study is non-probabilistic (theoretical sampling), with data saturation achieved through exploratory interviews involving 18 participants. For data analysis, the Grounded Theory method (Glaserian approach) was employed.
Results and Discussion: Through three-stage coding (open, selective, and theoretical), the analysis identified 67 instances categorized into 11 key concepts - marketing capability enhancement, risk management development, process intelligence, ecosystem development, infrastructural foundations, firm/company characteristics, supporters, competitors, networking, momentum building, and institutionalization - which were further classified into four core categories: multi-dimensional empowerment, inclusive capacity building, collaborative synergy, and dynamic reinvention. Successful execution of crowdfunding in startups proves particularly complex due to their dynamic and uncertain nature, with oversight of critical factors potentially creating significant challenges for founders. The crowdfunding process comprises three distinct phases—pre-launch, active campaign, and post-campaign—each requiring specific prerequisites. This study identifies these fundamental requirements as "multi-dimensional empowerment" (pre-launch), "inclusive capacity building" (active phase), "collaborative co-creation" (post-campaign), and "dynamic reinvention" (ongoing adaptation), forming a comprehensive framework for startup crowdfunding implementation.
Conclusion: Addressing the low success rate of crowdfunding among startups, this study develops an adoption framework, noting that while popular, its success factors remain understudied. The findings identify two key dimensions: multi-dimensional empowerment (internal factors within startups' control including risk management development, process intelligence, and marketing capability enhancement) and inclusive capacity building (external ecosystem factors comprising ecosystem development and infrastructural foundations, requiring collaboration with science parks, evaluation institutions, venture funds, NGOs, and government agencies). Crucially, the research highlights stakeholder co-creation as pivotal - a strategic approach engaging diverse actors in collaborative product/service design from ideation to implementation to generate shared value, ultimately determining crowdfunding success for startups. This study faced certain constraints, particularly regarding the complexity of success metrics in crowdfunding, which were mitigated through the integration of standardized terminology. Another limitation was the exclusive focus on startups, necessitating further research to generalize the findings to other domains. With minor modifications, the proposed model can be adapted to other crowdfunding contexts