Crowdfunding and Diasporas: Do Crowdfunding Practices Challenge Players Involved in Project Financing in their Former Homeland?

By Cécile Fonrouge

Crowdfunding is an emerging form of entrepreneurial finance. Financial flows from migrants and their descendants to their homeland are important. Do crowdfunding platforms disrupt this diaspora financial flow?? Our aim is to contrast and compare the literature in sociology of immigration, diaspora and entrepreneurial finance. The study of this new literature and the interviews with key French “Fintechs” entrepreneurs lead us to propose a first description of this market including typologies of diasporas. We also highlight diaspora members’ motivations to invest as well as the trend of evolution of these motivations with the development of crowdfunding. The main results deal with the balance between emotional and rational motivations in the decision to invest for the new generations of immigrants, the competencies that diaspora members give back to their country of origin and the modification of the hierarchy of financing sources due to the possibility to raise money online.JEL Codes: M13, O15, L23, O35


  • crowdfunding
  • ethnic entrepreneurship
  • migration
  • social start-up
  • motivation to invest
  • disruption
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