Doshi, Anil R;
(2023)
How High-performance Outliers Affect Entrepreneurial Entry on Crowdfunding Platforms.
SSRN: Amsterdam, Netherlands.
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Abstract
Entrepreneurs are increasingly choosing to enter digital crowdfunding platforms as one of the first steps toward establishing new ventures. In this paper, I study how that decision is affected by the presence of high-performance outliers—that is prior projects that raised substantial amounts of capital. I look at the early period of rewards-based crowdfunding, where there were two predominant platforms, Kickstarter and Indiegogo. I find that regardless of which platform an outlier appears on, subsequent entry is relatively higher on Indiegogo. This relative increase is stronger for low-quality entrepreneurs. The results suggest that the impact of high-performance outliers depends on the differentiated features of the two platforms. I discuss implications for understanding entrepreneurial entry and crowdfunding platform competition and governance.
| Type: | Working / discussion paper |
|---|---|
| Title: | How High-performance Outliers Affect Entrepreneurial Entry on Crowdfunding Platforms |
| Open access status: | An open access version is available from UCL Discovery |
| Publisher version: | https://dx.doi.org/10.2139/ssrn.2422111 |
| Language: | English |
| Additional information: | This version is the version of record. For information on re-use, please refer to the publisher’s terms and conditions. |
| Keywords: | platforms, two-sided markets, crowdfunding, entry |
| UCL classification: | UCL UCL > Provost and Vice Provost Offices > UCL BEAMS UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of Engineering Science > UCL School of Management |
| URI: | https://discovery-pp.ucl.ac.uk/id/eprint/10195953 |
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