Crowd investing and effectuation

Crowd investing is a form of financing in which the ’crowd’, i.e. the ’masses’, finance a start-up, thereby enabling companies to be founded that would not be possible through banks and conventional investments. Effectuation describes principles of success for entrepreneurs based on Saras D. Sarasvathy. She makes statements about the actions and thinking of successful entrepreneurs and summarises these in five principles. This book presents both fields of research and examines the connection between the principles of effectuation and the financing model of crowd investing.