DOES VENTURE CAPITAL AFFECT CROWDFUNDING PERFORMANCE?
This study quantitatively discusses the relationship among venture capitalists, entrepreneurs, and crowdfunders. It considers the effectiveness of venture capital on the performance of crowdfunding campaigns started by entrepreneurs. Specifically, we split 274,220 crowdfunding projects into venture...
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| Format: | Article |
| Language: | English |
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Faculty of Economics, University of Tuzla
2021-11-01
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| Series: | Economic Review |
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| Online Access: | http://er.ef.untz.ba/index.php/er/article/view/54 |
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| author | Chia-Ling Chang Yen-Sheng Lee Han-Kun Tien |
| author_facet | Chia-Ling Chang Yen-Sheng Lee Han-Kun Tien |
| author_sort | Chia-Ling Chang |
| collection | DOAJ |
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This study quantitatively discusses the relationship among venture capitalists, entrepreneurs, and crowdfunders. It considers the effectiveness of venture capital on the performance of crowdfunding campaigns started by entrepreneurs. Specifically, we split 274,220 crowdfunding projects into venture capital- and non-venture capital-funded projects and examined whether this type of financing enhances the performance of crowdfunding campaigns—measured by the number of crowdfunders and the amount of proceeds raised by the crowdfunding campaigns. The results of linear regression models reveal that the venture capital-funded entrepreneurial firms perform better in the crowdfunding market than their non-funded peers. Value-added services of the venture capital firms intensify the visibility of venture capital-financed startups in the crowdfunding market, thereby elevating crowdfunding performance. This study can help venture capital-backed entrepreneurs planning to launch crowdfunding campaigns gain an understanding of the role of venture capital in crowdfunding performance.
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| format | Article |
| id | doaj-art-c780bb8f4baf4be1b7b6224c11c7eed4 |
| institution | Kabale University |
| issn | 1512-8962 2303-680X |
| language | English |
| publishDate | 2021-11-01 |
| publisher | Faculty of Economics, University of Tuzla |
| record_format | Article |
| series | Economic Review |
| spelling | doaj-art-c780bb8f4baf4be1b7b6224c11c7eed42025-02-10T00:30:50ZengFaculty of Economics, University of TuzlaEconomic Review1512-89622303-680X2021-11-01192 DOES VENTURE CAPITAL AFFECT CROWDFUNDING PERFORMANCE? Chia-Ling Chang0Yen-Sheng Lee1Han-Kun Tien2Taiwan Institute of Economic Research, Taiwan Colorado Mea University, United StatesCollege of Management, Yuan Ze University, Taiwan This study quantitatively discusses the relationship among venture capitalists, entrepreneurs, and crowdfunders. It considers the effectiveness of venture capital on the performance of crowdfunding campaigns started by entrepreneurs. Specifically, we split 274,220 crowdfunding projects into venture capital- and non-venture capital-funded projects and examined whether this type of financing enhances the performance of crowdfunding campaigns—measured by the number of crowdfunders and the amount of proceeds raised by the crowdfunding campaigns. The results of linear regression models reveal that the venture capital-funded entrepreneurial firms perform better in the crowdfunding market than their non-funded peers. Value-added services of the venture capital firms intensify the visibility of venture capital-financed startups in the crowdfunding market, thereby elevating crowdfunding performance. This study can help venture capital-backed entrepreneurs planning to launch crowdfunding campaigns gain an understanding of the role of venture capital in crowdfunding performance. http://er.ef.untz.ba/index.php/er/article/view/54venture capitalcrowdfunding performanceentrepreneurs |
| spellingShingle | Chia-Ling Chang Yen-Sheng Lee Han-Kun Tien DOES VENTURE CAPITAL AFFECT CROWDFUNDING PERFORMANCE? Economic Review venture capital crowdfunding performance entrepreneurs |
| title | DOES VENTURE CAPITAL AFFECT CROWDFUNDING PERFORMANCE? |
| title_full | DOES VENTURE CAPITAL AFFECT CROWDFUNDING PERFORMANCE? |
| title_fullStr | DOES VENTURE CAPITAL AFFECT CROWDFUNDING PERFORMANCE? |
| title_full_unstemmed | DOES VENTURE CAPITAL AFFECT CROWDFUNDING PERFORMANCE? |
| title_short | DOES VENTURE CAPITAL AFFECT CROWDFUNDING PERFORMANCE? |
| title_sort | does venture capital affect crowdfunding performance |
| topic | venture capital crowdfunding performance entrepreneurs |
| url | http://er.ef.untz.ba/index.php/er/article/view/54 |
| work_keys_str_mv | AT chialingchang doesventurecapitalaffectcrowdfundingperformance AT yenshenglee doesventurecapitalaffectcrowdfundingperformance AT hankuntien doesventurecapitalaffectcrowdfundingperformance |