Crowdfunding in Portugal—Using the Raize Platform to Ensure the Sustainability of Companies and Projects

Abstract

This study aims to analyse the reasons why entrepreneurs choose to use collaborative financing through the Raize platform to finance their companies or projects through peer-to-peer crowdfunding (loans). This study is pertinent because it deals with an innovative, differentiated topic that presents itself as a possible disruptive form of financing and an alternative to traditional bank financing. Its use and significant take-up and the rapid and continuous growth of users on this type of crowdfunding platform is a strong sign of the need to better understand and study this phenomenon, its benefits, weaknesses, gaps and future mutations. Based on a comprehensive literature review and sound research methods such as exploratory qualitative multiple-case analysis, the aim is to gain a comprehensive understanding of the reasons why entrepreneurs and businesses choose crowdfunding through the Raize platform as a financing alternative. The aims of this study are to understand how financial accessibility, trust in the investor community, ease of use of the platform, competitiveness of fees and preference for crowdfunding over bank financing influence entrepreneurs’ decision to fund themselves through the Raize platform. The results reveal that entrepreneurs opt for the Raize platform due to a combination of factors. These reasons, clearly highlighted, provide a deeper understanding of entrepreneurs’ decision making in relation to financing their projects through crowdfunding. This study not only contributes to the literature on crowdfunding and entrepreneurship, but also offers practical pointers for entrepreneurs looking to obtain funding through a new financing system that is offered through the Raize platform, as it continues to support innovation and business growth in Portugal. Such funding contributes to and enhances the sustainability of companies in terms of their funding profile and attractive positioning in the market.