Funding Failure: Determinants of Persistence

Abstract

Since the economic meltdown in 2008, crowdfunding has emerged as an alternate source of finance for entrepreneurs looking for funds to start or support their venture. Most research in the area of crowdfunding has focused on the determinants of successful funding. To the best of our knowledge, very few studies exist about what happens to a project with an unsuccessful funding on crowdfunding platforms. Do the entrepreneurs who failed to get funding from crowdfunding platform abandon their project or do they persist with it and try to find alternate sources to make their dream come true? In this article, we study the determinants of persistence of an entrepreneur to bring their project to life after failing to receive funding from crowdfunding platforms.