The Crowdfunding Paradox in Crisis: Rising Funder Demand vs. Declining Entrepreneur Supply

This study investigates how the crowdfunding marketplace responds to major crises, focusing on behavioral shifts among funders and entrepreneurs. Results show a dual impact on platform dynamics. On the demand side, funders become more engaged, with notable increases in the number of backers, average contributions, and total pledge amounts. This heightened activity suggests stronger altruistic motivations, as individuals view crowdfunding as a way to support others during difficult times. On the supply side, however, entrepreneurs act more cautiously, leading to a decline in new project launches. This drop likely reflects increased risk aversion and uncertainty as creators navigate volatile conditions. These contrasting patterns reveal a clear supply–demand imbalance during crises: funders are more willing to contribute, while creators are less inclined to initiate projects. This gap highlights opportunities for crowdfunding platforms to implement strategic interventions that support entrepreneurs, leverage funders’ increased engagement, and strengthen crowdfunding’s role in financial resilience.