Title: Trust is not recognition: an exploration of revolts in crowdfunding

Authors: Jack Wroldsen; Djamchid Assadi

Addresses: Orfalea College of Business, California Polytechnic State University, San Luis Obispo, California, USA ' BSB, Burgundy School of Business, Campus Lyon, 37 Rue Saint-Romain, 69008 Lyon, France

Abstract: Theoretical frameworks for understanding and analysing the emerging and evolving crowdfunding industry have coalesced around the importance of establishing and maintaining trust in crowdfunding transactions and relationships. Going beyond trust, this study proposes the philosophical concept of recognition as a more complete theory of the nature of crowdfunding. Recognition, or the sphere of solidarity, emphasises the ongoing and reciprocal relationships of mutual respect that are central to how entrepreneurs derive value and project supporters derive meaning through crowdfunding. The paper relies on case studies to show the concept of recognition in action, demonstrating both the presence and the absence of recognition in crowdfunding campaigns. The paper contends that a theory of recognition provides a more accurate and holistic model for crowdfunding than trust alone.

Keywords: recognition; sphere of solidarity; crowdfunding; rewards; equity; strategy; entrepreneurship; Oculus; Facebook; Exploding Kittens; venture capital; investors; Kickstarter; contributors.

DOI: 10.1504/IJEIM.2023.129329

International Journal of Entrepreneurship and Innovation Management, 2023 Vol.27 No.1/2, pp.1 - 18

Accepted: 05 Sep 2022
Published online: 06 Mar 2023 *