On the signaling effect of reward-based crowdfunding: (When) do later stage venture capitalists rely more on the crowd than their peers?

Roma, Paolo; Vasi, Maria; Kolympiris, Christos

doi:10.1016/j.respol.2021.104267

Cited by 38 publications

(25 citation statements)

References 127 publications

(258 reference statements)

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“…These two signal receivers differ substantially since the motives driving VC funding decisions diverge from those guiding consumers to purchase a product. For instance, prior literature has suggested that boundary conditions making the CF signal effective for VCs are essentially related to a comprehensive assessment that targets managerial competencies and a startup's technological capabilities (e.g., Roma, Vasi, & Kolympiris, 2021a). We instead suggest that the efficacy of the CF performance as a signal for consumers depends on mechanisms typically Pledged Amount related to consumer purchase behavior, for example, peer-to-peer influence dynamics, consumer attitudes toward more or less innovative products, and the role of expert influencers.…”

Section: Implications For Theorymentioning

confidence: 99%

Crowdfunding performance, market performance, and the moderating roles of product innovativeness and experts' judgment: Evidence from the movie industry

Roma

Natalicchio

Panniello

et al. 2023

J of Product Innov Manag

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Reward‐based crowdfunding (CF) has emerged as a method to solicit funds for innovative projects. Yet, little is still known about the ability of reward‐based CF to act as a signal in the eyes of future consumers, and thus boost the future market performance of new products that innovators intend to commercialize using the campaign funds. In addition, scant research has clarified the boundary conditions that can magnify or weaken the efficacy of this CF signal. Given the relevance of reward‐based CF for supporting innovation, understanding when the CF campaign performance works as an effective signal is of great interest, especially in business settings characterized by high product quality uncertainty. By using the movie industry as a setting, we contribute to fill this gap. Specifically, we argue that the positive effect of the reward‐based CF performance is moderated by two important factors influencing consumers' purchase decisions: the degree of product innovativeness and the expert judgment about the product. Elaborating on the effects of product innovativeness, we posit that this product feature should moderate the positive relationship between CF and subsequent market performances in an inverted U‐shaped fashion. Favorable expert recommendations, on the other hand, should weaken the efficacy of the CF performance as a signal. Results from a sample of 1059 new movies (of which 152 released in theaters) confirm these predictions and offer several remarkable implications for innovators.

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Section: Implications For Theorymentioning

confidence: 99%

Crowdfunding performance, market performance, and the moderating roles of product innovativeness and experts' judgment: Evidence from the movie industry

Roma

Natalicchio

Panniello

et al. 2023

J of Product Innov Manag

Self Cite

View full text Add to dashboard Cite

show abstract

“…This form of crowdfunding allows companies to launch with orders already on the books and cash-flow secured (a major issue for new business) and gathers an audience before a product launch. Empirical research suggests that ventures initially funded through reward-based crowdfunding can be even more likely than those initially backed by venture capitalists in attracting follow-up funds from venture capitalists (Roma et al, 2021).…”

Section: State Of Play and Challengesmentioning

confidence: 99%

Improving Micro-, Small and Medium Enterprise’s Access to Start-up Financing in ASEAN Countries

MARAN¹

2022

JoRIT

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Lack of access to finance constitutes a major setback to the development of the micro-, small and medium-sized enterprise (MSME) sector in the countries of the Association of Southeast Asian Nations (ASEAN). MSMEs are confronted with stringent funding constraints in traditional lending and capital markets, in particular at the early stages of their activity. Demand and supply of capital to MSMEs thus entails more complex issues compared to the larger firms. This paper presents a number of policy actions that have the potential to mitigate the financing challenges faced by MSMEs in ASEAN at the start-up stage by enhancing the potential of alternative funding sources such as business angel investment, crowdfunding, venture capital investment and SME stock markets.

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“…Previous studies have discussed how to be successful via crowdfunding from a number of different perspectives such as new product development ( Chan et al, 2021 ; Roma et al, 2021 ; Wu and Chen, 2021a ), crowdfunding project design ( Moradi and Badrinarayanan, 2021 ; Felipe et al, 2022 ), multimedia and social media ( Datta et al, 2019 ), and financial sustainability ( Gamble et al, 2017 ). This study organizes the above into modules, contents, and references ( Table 2 ).…”

Section: Content Of the Crowdfunding Coursementioning

confidence: 99%

Crowdfunding Curriculum Design Based on Outcome-Based Education

Yuan

2022

Front. Psychol.

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Entrepreneurship has flourished in recent years; however, since education on how to raise funds has received little attention from scholars, obtaining funds remains a difficult task. The development of crowdfunding has provided new opportunities to entrepreneurs, thus solving the funding, marketing, and distribution problems they previously faced. The main purpose of this study is to organize crowdfunding literature and to develop a crowdfunding curriculum grounded on output-based education. Students are asked to develop a product and a crowdfunding plan within the span of one semester. This study explains the teaching content separately from the crowdfunding plan competition, course elements, and timetable.

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On the signaling effect of reward-based crowdfunding: (When) do later stage venture capitalists rely more on the crowd than their peers?

Cited by 38 publications

References 127 publications

Crowdfunding performance, market performance, and the moderating roles of product innovativeness and experts' judgment: Evidence from the movie industry

Crowdfunding performance, market performance, and the moderating roles of product innovativeness and experts' judgment: Evidence from the movie industry

Improving Micro-, Small and Medium Enterprise’s Access to Start-up Financing in ASEAN Countries

Crowdfunding Curriculum Design Based on Outcome-Based Education

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