This in-depth study of why people create or fund projects online is based on 83 semi-structured interviews with creators, supporters, and people who had decided not to use crowdfunding.

Some principal findings follow. Besides raising funds, creators want to expand awareness of their work, connect with others, and gain approval. Creators also want long-term interaction and feedback from supporters. A benefit of crowdfunding for creators is maintaining control, without the constraints imposed by traditional financial institutions. Supporters (funders) participate to expand their social network, to feel they are part of a special community. They also want to support causes and people, be recognized, and collect rewards. Participants appear to be strongly motivated by wanting to learn and to connect with others, beyond the value of the financial transaction. Creators, especially, and supporters want to carry out the project themselves. Supporters value the opportunity to choose projects to fund, to be in control.

Three design principles for crowdsourcing are presented: promote interaction between supporters and creators throughout the process; build a community of creators and supporters; and provide transparency about intellectual property restrictions and supporters’ preferences and amounts given.

The paper is readable and insightful, and will be a useful guide to someone considering a crowdfunding campaign.