Search results

1 – 1 of 1
Article
Publication date: 10 April 2019

Chang Heon Lee and Ananth Chiravuri

Serial crowdfunding is becoming a common phenomenon as entrepreneurs repeatedly return to online crowdfunding to raise capital. In this study, the authors focus attention on…

1397

Abstract

Purpose

Serial crowdfunding is becoming a common phenomenon as entrepreneurs repeatedly return to online crowdfunding to raise capital. In this study, the authors focus attention on serial crowdfunders, that is, entrepreneurs who experience launching more than one crowdfunding project. The purpose of this paper is to investigate the role of past experience on subsequent crowdfunding performance. This study also examines whether initial success vs initial failure leads serial crowdfunders to engage in more explorative behaviors (i.e. switching industry) and to take exploitative actions (i.e. adjusting campaign strategies in terms of goal setting and funding option).

Design/methodology/approach

Data on serial crowdfunding projects was retrieved from Indiegogo platform. The logistic regression models are estimated to assess the impact of past entrepreneurial experience on subsequent crowdfunding decisions, and to estimate the effects of the three strategies on subsequent funding performance.

Findings

The results show that serial creators who experienced successful initial crowdfunding are more likely to explore a new industry or product category in the crowdfunding market and to set a higher target capital for the subsequent campaign when they change a project category.

Originality/value

Despite the fact that there are a considerably large number of serial crowdfunders in crowdfunding market, relatively little research has been conducted to investigate the presence of learning benefits from a previous to a subsequent crowdfunding project. Two competing hypotheses, drawn from the attribution theory and hubris theory of entrepreneurship, were tested in this study to determine the impact of prior success vs failure experience on both subsequent crowdfunding decisions and funding performance.

Details

Internet Research, vol. 29 no. 5
Type: Research Article
ISSN: 1066-2243

Keywords

1 – 1 of 1