What Happens After a Crowdfunding Campaign?

Abstract

In this chapter, we review the literature that investigates firms or projects after they have successfully raised funds (or failed to raise funds) on crowdfunding platforms. For this purpose, we first focus on firm outcomes, including firm failure, follow-on fundraising, and firm performance. When governments embrace crowdfunding this is primarily because policymakers expect that crowdfunding will allow firms with innovative ideas to form, grow, and flourish. Second, we focus on the promises made by entrepreneurs to the crowd, such as the delivery of rewards or the provision of returns. When the general public and investors embrace crowdfunding this is primarily because they expect that crowdfunding will provide them with non-financial and/or financial benefits. Finally, we provide a roadmap for scholars by providing an overview of important topics that warrant more attention in future research.