Session 53

New forms of entrepreneurial funding

Track K

Date: Monday, October 5, 2015


Time: 13:45 – 15:00


Room: Governor's Square 17

Session Chair:

  • Suresh Kotha, University of Washington

Title: Democratization of New Venture Funding: Does Gender Matter in Crowdfunding Settings?


  • Anna Fung, University of Washington
  • Alex Murray, University of Washington
  • Suresh Kotha, University of Washington

Abstract: Entrepreneurship research shows that men unequivocally receive more funding for early-stage ventures than women receive. Studies seeking to explain gender biases attribute differences to the masculine framing of entrepreneurship, the stereotypes held by traditional funding providers, and expected male character traits. To explain this phenomenon, research employs various theoretical lenses. We test whether gender matters in the crowdfunding context using a sample of technology ventures between 2010 and 2013. We find no significant difference in funding success between male and female entrepreneurs. We theorize that crowdfunding alters the boundary conditions for resource assembly by breaking down barriers for female entrepreneurs and democratizing access to potential resource providers. This research contributes to the literature on gender and resource acquisition in the emerging context of crowdfunding.

Title: Heterogeneous Motives in Crowdfunding Markets


  • Bryan Stroube, London Business School

Abstract: The dynamics of a market are influenced by the motives of actors in the market. This study contributes to emerging research on the microfoundations of strategy by exploring the importance of heterogeneous motives in fundraising markets. To do so, I examine the potentially conflicting investment motives found on a non-profit crowdfunding platform, where simultaneous market and charity logics may lead lenders to respond to the perceived ability and perceived need of the entrepreneurs requesting money. An original survey of lenders on the platform will supplement the analysis of millions of actual lending decisions. A deeper understanding of the existence and consequences of heterogeneous investment motives can ultimately help improve fundraising strategy for entrepreneurs.

Title: Investors' Perceptions of Uncertainty and Crowdfunding Strategies


  • Mark Packard, University of Nevada, Reno
  • John Berns, University of Mississippi
  • Brent Clark, University of Nebraska at Omaha

Abstract: How investors make decisions on prospective investments is an important empirical question for entrepreneurship theory. Acknowledging Knight’s seminal distinction between risk and uncertainty, we contend that traditional risk-based decision frameworks are inadequate for understanding entrepreneurial financing decisions as such decisions are often made in contexts of Knightian uncertainty. Adopting a crowdfunding context for our theoretical and empirical investigation, we propose two key uncertainty dimensions as determinants of both the success rate of obtaining financing and the type of financing obtained. These are the type of uncertainty (i.e. risk/uncertainty) and the strength of the uncertainty. We offer several key insights into how entrepreneurs and their potential financiers deal with uncertainty through various financing options, and how these may impact the overall success of the venture.

Title: Many Crowds, Many Fundings


  • Alicia Robb, Ewing Marion Kauffman Foundation
  • Ethan Mollick, University of Pennsylvania

Abstract: Crowdfunding remains one of the most exciting areas for entrepreneurial finance, as well as for supporting charities and creative works. Its power comes not just from the resources that it can mobilize, but also because it democratizes the supply of and access to capital in ways that have never been possible before. We believe it is important to examine how crowds of backers differ among platforms, and how this interacts with the funding mechanisms of the platforms themselves. There are three main reasons why individuals seek crowdfunding, and three main reasons why backers invest. We start by explaining these categories, and then examine what happens when we include them together. We then offer some of the first empirical comparisons between reward-based and equity crowdfunding.

All Sessions in Track K...

Sun: 08:00 – 09:15
Session 10: Entrepreneurship in Base-of-the-Pyramid Markets
Sun: 09:45 – 11:00
Session 11: Crowdfunding Research: Present and Future
Sun: 11:15 – 12:30
Session 12: Environmental Entrepreneurship: How and When do Entrepreneurs address Environmental Degradation?
Sun: 16:15 – 17:30
Session 50: Entrepreneurship and Institutional Environment
Sun: 17:45 – 00:00
Session 319: Entrepreneurship and Strategy Business Meeting
Mon: 08:00 – 09:15
Session 56: Family firms
Mon: 11:15 – 12:30
Session 119: Competition and entrepreneurial entry
Mon: 13:45 – 15:00
Session 53: New forms of entrepreneurial funding
Session 97: Accelerators, corporate VCs and new venture creation
Mon: 16:45 – 18:00
Session 59: Entrepreneurship in emerging markets
Session 98: Culture, institutions and entrepreneurship
Tue: 08:00 – 09:15
Session 54: Venture capital and angel financing
Session 118: Entrepreneurial orientation and strategic entrepreneurship
Session 217: Leadership and Governance in Family Firms
Tue: 11:00 – 12:15
Session 51: Academic entrepreneurship
Tue: 14:15 – 15:30
Session 58: Corporate VCs and spin-outs
Session 120: Creativity, knowledge spill overs and a venture's legitimacy
Tue: 15:45 – 17:00
Session 52: Entrepreneurial business models
Session 55: Entrepreneurship and cognitions
Tue: 17:30 – 18:45
Session 57: Entrepreneurial teams
Session 99: Governance and entrepreneurial finance

Strategic Management Society