Doshi, Anil R;
(2025)
How high‐performance outliers affect relative entrepreneurial entry on competing crowdfunding platforms.
Strategic Entrepreneurship Journal
10.1002/sej.1545.
(In press).
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Abstract
Research Summary Entrepreneurs have increasingly entered digital crowdfunding platforms as a viable option for acquiring capital. This paper examines how high‐performance outliers—projects that raised substantial amounts of capital—affect other entrepreneurs' decisions to enter crowdfunding. The present study focuses on the two largest rewards‐based crowdfunding platforms, Kickstarter and Indiegogo. Results indicate that, following outliers, entry was relatively higher on the platform with less restrictive, entrant‐friendly governance (i.e., Indiegogo). This effect was more pronounced among low‐quality entrants and moderated by projects in categories that have higher capital requirements. The findings suggest that differences in platform governance influence how subsequent entrepreneurial entrants behave. Managerial Summary Entrepreneurs use crowdfunding as a viable source of capital. This paper looks at how outliers—projects that raise substantial capital—affected subsequent entry decisions by other entrepreneurs onto the two largest platforms, Kickstarter and Indiegogo. Outliers led to relatively more projects joining Indiegogo, but those projects were disproportionately of low quality. Projects in categories that typically seek more money disproportionately joined Kickstarter. When considered in the context of platform competition, not only does platform governance affect levels of entry on a platform, it also alters the relative mix of entrants that join each platform.
| Type: | Article |
|---|---|
| Title: | How high‐performance outliers affect relative entrepreneurial entry on competing crowdfunding platforms |
| Open access status: | An open access version is available from UCL Discovery |
| DOI: | 10.1002/sej.1545 |
| Publisher version: | https://doi.org/10.1002/sej.1545 |
| Language: | English |
| Additional information: | This work is licensed under a Creative Commons License. The images or other third-party material in this article are included in the Creative Commons license, unless indicated otherwise in the credit line; if the material is not included under the Creative Commons license, users will need to obtain permission from the license holder to reproduce the material. To view a copy of this license, visit http://creativecommons.org/licenses/by/4.0/ |
| Keywords: | Crowdfunding, digital platforms, entry, platform competition, platform governance |
| 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.ucl.ac.uk/id/eprint/10208883 |
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