Abstract

http://ssrn.com/abstract=2376997
 


 



After the Campaign: Outcomes of Crowdfunding


Ethan R. Mollick


University of Pennsylvania - Wharton School

Venkat Kuppuswamy


University of North Carolina Kenan-Flagler Business School

January 9, 2014


Abstract:     
We conducted a follow-up survey of large design, technology, and video games projects that attempted to raise money using crowdfunding before mid-2012. We found that reward-based crowdfunding appears to be able to lead to and support traditional entrepreneurship. A very high percentage (over 90%) of successful projects remained ongoing ventures 1-4 years after their campaign. We found that 32% of all these reported yearly revenues of over $100,000 a year since the Kickstarter campaign, and added an average of 2.2 employees per successful project. The survey also suggested that crowdfunding provided many potential benefits beyond the crowdfunded money itself to successful creators, including helping provide access to customers, press, employees, and outside funders. Consistent with other research, many projects were delayed for a variety of reasons, and 37% went over budget. We also analyze the factors that lead to longer-term crowdfunding success.

Number of Pages in PDF File: 18

Keywords: crowdfunding, kickstarter, entrepreneurship, new ventures

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Date posted: January 11, 2014  

Suggested Citation

Mollick, Ethan R. and Kuppuswamy, Venkat, After the Campaign: Outcomes of Crowdfunding (January 9, 2014). Available at SSRN: http://ssrn.com/abstract=2376997 or http://dx.doi.org/10.2139/ssrn.2376997

Contact Information

Ethan R. Mollick (Contact Author)
University of Pennsylvania - Wharton School ( email )
The Wharton School
Philadelphia, PA 19104-6370
United States

Venkat Kuppuswamy
University of North Carolina Kenan-Flagler Business School ( email )
Chapel Hill, NC 27599
United States

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