Non-profit differentials in crowd-based financing: Evidence from 50,000 campaigns

By Stefan Pitschner, Sebastian Pitschner-Finn. 2014

113 citations recorded by the source corpus.

We use data from approximately 50,000 crowdfunding projects to assess the relative funding performance of for-profit and non-profit campaigns. We find that non-profit projects are significantly more likely to reach their minimum funding goals and that they receive more money from the average funding provider. At the same time, however, they have fewer funding providers and obtain lower total funding amounts. Our analysis shows that these results are driven by a small number of very successful for-profit projects. We argue that the findings are consistent with a simple selection mechanism in which entrepreneurs make the non-profit/for-profit decision based on expected project payoffs.

Subfields: Accounting, Economics and Econometrics, Management Information Systems

View Paper: https://www.semanticscholar.org/paper/f4bb804173b73e546fec1f704b42c2e59d60b7b2

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

In Economics and Econometrics

In Management Information Systems

Citations in the corpus

Serial Crowdfunding, Social Capital, and Project Success (2017, methodology): “…setting offers an ideal test-bed for empirical work, indeed, it allows us to control for the information backers could use when they took the decision; and Kickstarter data have been used in several prior studies (e.g., Colombo et al., 2015; Mollick & Nanda, 2015; Pitschner & Pitschner-Finn, 2014).”