Role of heuristic principles on crowd-funder's investment decision making

With the rise in entrepreneurial activities, the study of a firm's fund generation strategy is widely discussed and researched. The requirement of funds for different ventures are different and depends on the life stage of the venture, which it is in. Firm generally face difficulty in raising outside capital-both debt and equity. Crowdfunding is a fairly recent fund generating method that reduces this financial gap. Crowdfunding involves individuals who decide whether or not to invest in a project. Since it involves decision making under uncertainty I probe the possibility of presence of heuristic principles in the decision-making process. I propose that certain heuristic principles like availability and representativeness, affects the decision-making process of the investors. and thus, this paper aims to explore the "fast and frugal" way of decision making in crowd funders.