Tell me how you feel, and I’ll tell you about your crowd. How entrepreneur motivation influences crowdfunding modality choices

Abstract Purpose This paper uses Self-Determination Theory to explore how entrepreneurs’ basic psychological needs relate to their choice of crowdfunding modality. While prior research has focused on backers’ motivations, little attention has been paid to how entrepreneurs’ psychological needs (Autonomy, Competence, and Relatedness) affect their funding strategy. Approach It adopts a mixed-method approach combining semi-structured interviews (N=46) with a followup questionnaire (N=91), using SDT’s motivational continuum as an analytical lens. Results The qualitative analysis identifies four distinct entrepreneurial profiles, whose crowdfunding experiences reflect different patterns of psychological need satisfaction and frustration. Quantitative results support the qualitative findings: entrepreneurs choosing financial crowdfunding (equity or lending) report higher competence and lower autonomy scores than those using non-financial modalities (reward or donation). Logistic regression confirms that Competence is a positive correlate and Autonomy is a negative correlate of financial crowdfunding use. Originality By linking motivational drives to funding modality use, our study reveals how entrepreneurs engage with the crowdfunding ecosystem not only as economic agents but also as psychologically driven individuals. These findings offer a novel contribution to entrepreneurial finance by integrating behavioral theory into funding decision-making, suggesting a more nuanced understanding of how financing tools relate to entrepreneurial experiences and outcomes.