How early contributions affect crowdfunding success

"Entrepreneurs are increasingly relying on internet crowdfunding – the use of online platforms to raise money from multiple contributors. It's reported that active global crowdfunding platforms generated more than US$34.4 billion (A$45 billion) in 2015. The World Bank estimates the crowdfunding industry will reach US$90 billion by 2020. In terms of scale, crowdfunding has become a viable alternative to venture capital and angel investment. For most entrepreneurs, seeking funding from family and friends is a popular and effective way to round up their initial capital for business. The reason is simple: these are the people who are more likely than anyone else to believe in your ability and fund your dream. But is there any downside of this source of funding? Will early contributions from family and friends be a good signal for other potential funders?" Fan Tingting and Leilei Gao, UNSW Business School BusinessThink, 20 June 2018 Read more