Crowdfunding for Startups: Awareness and Trust Among Small Investors

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Published: Aug 1, 2025
DOI: https://doi.org/10.29070/yyysbg84
Keywords:
Small Investors, Startups, Crowdfunding, Investment, Trust, Awareness

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Authors

Sheetal Kushwah

Master's of Business Administration, HR & Finance, Vikrant University, Gwalior, M.P.

Rachna Yadav

Master's of Business Administration, HR & Marketing, Jiwaji University, Gwalior, M.P.

Abstract

This research looks at small investors' knowledge and confidence in startup crowdfunding in India. The study investigated investor opinions, trust-related aspects, awareness levels, comprehension of crowdfunding ideas, and demographic features using a structured questionnaire survey with 80 respondents. The results show that while small investors acknowledge crowdsourcing as a practical and creative source of funding, their general understanding is still modest, and their inclination to get involved is mostly influenced by worries regarding platform trustworthiness, transparency, and regulation. The most significant factors influencing investor trust were found to be the availability of a clear regulatory framework and the transparency of fund use. The research comes to the conclusion that increasing investor knowledge, improving regulatory monitoring, and fostering institutional confidence in crowdfunding platforms are all critical if crowdfunding is to become a viable financing instrument for Indian startups.

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Article Details

Issue

Vol. 20 No. 2 (2025): International Journal of Information Technology and Management (IJITM)

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