Founder's entry strategy and funding performance in the crowdfunding industry: The mediating role of founder's attention

Abstract

Research SummaryBuilding on recent studies on founders' entry strategy and the attention‐based view, our study examines the underexplored relationship between entrepreneurial entry mode and funding performance. We offer a novel perspective on how different entry strategies—such as hybrid, portfolio, and full‐time entrepreneurship—impact start‐up performance. Additionally, we develop a theoretical framework highlighting founder attention as a mediator in this relationship. Our research was conducted in the crowdfunding context, with findings remaining consistent across multiple measures of founder attention and funding performance. To address potential endogeneity concerns, we employ two‐stage instrumental variable analyses and a propensity score matching method, ensuring the robustness of our results.Managerial SummaryEntrepreneurs' choice of entry strategy plays a critical role in shaping their ability to secure funding and drive their start‐up success. Our study highlights how different entry strategies—hybrid, portfolio, and full‐time entrepreneurship—affect funding performance, particularly in the crowdfunding context. A key insight is the role of founder attention in mediating the relationship between entry strategy and funding success. The way founders allocate their focus across different pursuits influences investor perceptions and financial outcomes. Therefore, aligning entry strategies with the ability to effectively manage and signal commitment to ventures is essential from a practical standpoint. Moreover, entrepreneurs and investors should consider how strategic entry choices impact not only operational execution but also the likelihood of securing financial support.