Non-profit differentials in crowd-based financing: Evidence from 50,000 campaigns
AbstractWe 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.
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Bibliographic InfoArticle provided by Elsevier in its journal Economics Letters.
Volume (Year): 123 (2014)
Issue (Month): 3 ()
Contact details of provider:
Web page: http://www.elsevier.com/locate/ecolet
Crowdfunding; Non-profit; Entrepreneur; Startup;
Find related papers by JEL classification:
- G3 - Financial Economics - - Corporate Finance and Governance
- L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
- L3 - Industrial Organization - - Nonprofit Organizations and Public Enterprise
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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in: Innovation Policy and the Economy, Volume 14, pages 63-97
National Bureau of Economic Research, Inc.
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