Investors Awareness and Perception Towards Crowdfunding: An Analytical Study

Abstract

Crowdfunding has emerged as an innovative financial instrument that enables entrepreneurs, startups, and social organizations to raise capital from a large number of individuals through online platforms. This research paper examines the awareness and perception of investors towards crowdfunding as an investment avenue. The study focuses on investors from Ernakulam district and analyses their level of awareness, investment preferences, factors influencing investment behaviour, and perception towards crowdfunding platforms. The research is based on both primary and secondary data. Primary data was collected from 112 respondents through structured questionnaires, while secondary data was collected from books, journals, and online sources. Statistical tools such as percentage analysis, mean analysis, and chi-square tests were used for interpretation. The findings reveal that most investors are aware of crowdfunding and consider return, liquidity, and safety as major factors influencing investment decisions. However, investors still require greater awareness regarding the functioning and risks associated with crowdfunding. The study concludes that crowdfunding has significant growth potential in India and can become an important alternative investment and financing mechanism if proper awareness and regulatory support are provided.