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This paper focuses attention on entrepreneurial performance after the collection of money through crowdfunding. Building on the theories of entrepreneurial learning, social capital, and audience expectation, I show that the benefits of crowdfunding diminish with increasing crowd attracted. In result, campaigns which involved a higher number of backers show poorer performance both in terms of product commercialization and quality evaluations. A quantitative analysis of 1308 projects posted on Kickstarter supports our contentions. Implication for scholars, practitioners and policymakers are discussed.
Vincenzo Butticè (Tue,) studied this question.