The purpose of this research was to examine what motivates and influences an individual to invest in a project or company through equity-based crowdfunding. The intention was therefore to identify internal and external motivation factors and examine how external social factors such as the Internet, other individuals’ investment decisions and interaction in social groups affect an individual when he or she invests through equity-based crowdfunding. The results showed that both internal and external motivation factors are important components of an investment through equity-based crowdfunding. External motivators proved to be for example yields and helping entrepreneurs. The study showed that the internal motivators that drive an individual to invest through equity-based crowdfunding include the sense of excitement, pleasure and that the investment coincides with the own interests. The study also showed that the Internet primarily affect investors through an unrestricted flow of information and access to a social interaction. Even other individuals' investments, as an external social factor, were shown to have an impact on the study's respondents when they invest through equity-based crowdfunding. In addition, the study showed that the interaction in a close circle of friends can influence individuals in their investment decisions through equity-based crowdfunding.

The purpose of this essay is to examine the Swedish people’s level of knowledge about crowdfunding and their incentives and deterrents to crowdfunding investments. Early on crowdfunding was divided into two objectives: reward based and equity based crowdfunding. The division of objectives is logical due to the differencing conditions of the motivation for investors to invest. Supported by theories in crowdfunding incentives, commitment-trust, the prospect theory, and the diffusion of innovations, we aim to establish a comprehensive line of reasoning to support our model of motivation in the conclusive chapter. The results of this essay were achieved by a combined method. A quantitative survey tended to give us a sense of how well known the crowdfunding phenomenon is amongst the Swedish people. It was followed by a qualitative study consisting of interviews with crowdfunding investors with aim to understand their incentives and deterrents. The interviews served as the basis for our analysis. Our analysis reveals that the incentives to invest differ between equity based and reward based crowdfunding. The major common incitement was trusting the entrepreneur behind the project, rather than a neat investment prospectus. The seminal crowdfunding deterrent is ignorance. Today, the Swedish people are unknowing of the phenomenon and its significance.