This Paper synthesizes the evolving landscape of crowdfunding as an alternative startup financing model, with a focus on India as a dynamic case. Grounded in multidisciplinary theories from entrepreneurship, finance, and technology, the study examines information asymmetry, social capital, network effects, and innovation diffusion to explain crowdfunding dynamics. A systematic literature review identifies major trends across reward-based, equity-based, and lending-based platforms, and highlights the growing influence of social media and online communities on campaign performance. The analysis also delineates challenges including campaign effectiveness, investor protection, and regulatory complexities, alongside social implications such as democratizing access to capital and fostering inclusive innovation. By integrating insights from empirical studies, conceptual works, and case analyses, the review outlines practical implications for entrepreneurs, investors, policymakers, and researchers and suggests avenues for future inquiry into crowdfunding’s role in reshaping startup financing and economic development in emerging markets like India.
B et al. (Sat,) studied this question.