Skip to content Skip to navigation
University of Warwick
  • Study
  • |
  • Research
  • |
  • Business
  • |
  • Alumni
  • |
  • News
  • |
  • About

University of Warwick
Publications service & WRAP

Highlight your research

  • WRAP
    • Home
    • Search WRAP
    • Browse by Warwick Author
    • Browse WRAP by Year
    • Browse WRAP by Subject
    • Browse WRAP by Department
    • Browse WRAP by Funder
    • Browse Theses by Department
  • Publications Service
    • Home
    • Search Publications Service
    • Browse by Warwick Author
    • Browse Publications service by Year
    • Browse Publications service by Subject
    • Browse Publications service by Department
    • Browse Publications service by Funder
  • Help & Advice
University of Warwick

The Library

  • Login
  • Admin

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

Tools
- Tools
+ Tools

Roma, Paolo, Vasi, Maria and Kolympiris, Christos (2021) On the signaling effect of reward-based crowdfunding : (when) do later stage venture capitalists rely more on the crowd than their peers? Research Policy, 50 (6). 104267. doi:10.1016/j.respol.2021.104267

[img] PDF
WRAP-signaling-effect-reward-based-crowdfunding-Kolympiris-2021.pdf - Accepted Version
Embargoed item. Restricted access to Repository staff only until 23 October 2022. Contact author directly, specifying your specific needs. - Requires a PDF viewer.
Available under License Creative Commons Attribution Non-commercial No Derivatives 4.0.

Download (1547Kb)
Official URL: https://doi.org/10.1016/j.respol.2021.104267

Request Changes to record.

Abstract

Venture capitalists (VCs) make only a small number of investments and are more likely to invest in ventures where other VCs have invested previously. As such, valuable opportunities may be forgone if they are not funded by VCs in the first place. We demonstrate how crowdfunding (CF) can remedy this concern. Using a sample of new technology-based ventures, we reveal that ventures initially funded through reward-based CF can be even more likely than those initially backed by VCs in attracting follow-up funds from VCs. This happens when ventures originally funded via reward-based CF complement the certification they derive from CF with patents and a founding team with a track record of success. In those cases, VCs rely on the crowd more than their peers. Overall, the results suggest that signal complementarity can at least equalize the effectiveness of an a priori inferior and an a priori superior signal.

Item Type: Journal Article
Subjects: H Social Sciences > HG Finance
Divisions: Faculty of Social Sciences > Warwick Business School
Library of Congress Subject Headings (LCSH): Crowd funding, Venture capital, Investments
Journal or Publication Title: Research Policy
Publisher: Elsevier
ISSN: 0048-7333
Official Date: July 2021
Dates:
DateEvent
July 2021Published
23 April 2021Available
5 April 2021Accepted
Volume: 50
Number: 6
Article Number: 104267
DOI: 10.1016/j.respol.2021.104267
Status: Peer Reviewed
Publication Status: Published
Access rights to Published version: Restricted or Subscription Access

Request changes or add full text files to a record

Repository staff actions (login required)

View Item View Item
twitter

Email us: wrap@warwick.ac.uk
Contact Details
About Us