Evolutionary Fundraising Patterns and Entrepreneurial Performance in Crowdfunding Platforms

The emergence of crowdfunding could unleash substantial changes in the business environment. With the new funding platform, technology start-ups can easily access external resources. For fledgling entrepreneurs, both obtaining financial resources and creating innovation are important for their survival. Most research has been focusing on how entrepreneurs successfully raise money, but there is lack of attention to whether successfully funded crowdfunding projects deliver outcomes or not. We investigate the existing dynamics in fundraising process, and how the fundraising patterns are related to crowdfunding projects performance. We develop our research hypotheses based on entrepreneurship theory and bandwagon effects literature. Using functional data analysis method, we examine our research questions. The current findings show the various impacts of fundraising patterns on entrepreneurs’ performance. This study will contribute to crowdfunding and entrepreneurship literature and offer practical implications by providing a theoretical framework and the supporting empirical evidence.