Is Prior Failure a Burden for Entrepreneurs’ Follow-Up Crowdfunding Success?: An Expectancy Violations Theory Perspective

Abstract

Is prior failure a burden for entrepreneurs’ subsequent crowdfunding success? Prior research is equivocal with some suggesting failure offers a valuable learning experience, whereas others suggest failure indicates that entrepreneurs lack the competencies to be successful. To provide clarity, we draw on expectancy violations theory and delve into the influence of gender. We find that as the magnitude of failure increases, entrepreneurs’ likelihood of subsequent crowdfunding success decreases. However, this baseline relationship is moderated by the valence crowdfunders have toward entrepreneurs. We find that women entrepreneurs and entrepreneurs that failed in gender-incongruent categories are more likely to secure subsequent crowdfunding.