Olav Sorenson, Valentina Assenova, Guan-Cheng Li, Jason Boada, and Lee Fleming
Using data on Kickstarter campaigns and venture capital investments from 2009–2015, we explored whether crowdfunding expanded access to financial capital, in the sense of supporting innovation in more geographically diverse regions than venture capital. Over this period, crowdfunding has supported projects in many regions that have attracted little or no venture capital. Within regions, moreover, the evidence suggests that successful crowdfunding campaigns attract future venture capital investments and that they have been doing so at an increasing rate. Crowdfunding therefore appears to be expanding access to capital to a larger pool of innovators.
Science, 354 (2016): 1526-1528 (OPEN ACCESS)