What is it about?

The aim of this chapter is to explore the understanding of the newly invented crowdfunding, types of the existing platforms of the industry. Authors investigated crowdfunding platforms that are registered in securities commission Malaysia and Kapitalboost platform of Singapore and their mode of investment. Authors also looked in depth and reviewed a current literature on crowdfunding. Through Mudharabah and Musharakah investment this will be a unique opportunity for practitioners and academic alike. The findings explored that equity crowdfunding could bring more benefit and less harm to entrepreneurs. Consequently, there are two types of models that are based on equity-in and equity-out; hence, the chapter recommends the equity crowdfunding over the debt-based through Islamic investment method of Musharakah and Mudharabah investment.

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Why is it important?

Here is a digital era to remain and FinTech is the way forward. Hence this paper significant for present and future era.


An investment model of crowdfunding that will be suitable for the Muslim investors who are looking into an ethical investment and complies with shariah guidelines that will contribute to the wellbeing of the societies as whole.

Research Professor Dr. Khaliq Ahmad
Putra Business School-UPM-Malaysia

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This page is a summary of: Crowdfunding, January 2021, IGI Global, DOI: 10.4018/978-1-7998-3257-7.ch007.
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