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The purpose of this paper is to probe how reward-based crowdfunding campaigns accomplish their goal by adopting the theoretical constructs of social capital dimensions: structural, cognitive and relational.

The approach used is a design model for concluded campaigns in a Mexican crowdfunding platform, which determines social capital from operating social networks (Facebook and Twitter). By using this model, the associations between the dimensions are revealed, verifying how social capital flourishes during the campaign and how it alters the campaign’s outcome.

The findings demonstrate how social interaction through a wide social network (structural dimension), shared vision and values among entrepreneurs and their potential funders (cognitive dimension), and the development of trustworthiness within the campaign (relational dimension) boost the probability of achieving the crowdfunding goal.

The results inform researchers on how social capital is forged from social networks during a crowdfunding campaign. However, the method must be validated with other crowdfunding models and other social network platforms commonly used by campaign creators.

Contributions from this paper include tools (design model and evaluation method) associating theory with the crowdfunding mechanism, complementing previous work. Crowdfunding providers, as well as campaign creators, have now an approach to appraise social capital and obtain the desired goal.

In addition to providing much-needed research on the current state of crowdfunding, this paper analyzes the link between practice and theory, which can be valuable in confining the mechanism to an accurate theory and ensuring the theory’s longevity.

This paper explores knowledge sharing (KS) and intellectual capital (IC) impacts on the success rate of equity crowdfunding (EC) campaigns in the Italian market, which represents a new model for financing entrepreneurial initiatives.

The relation between KS, IC and the success rate of EC campaigns is analysed with a panel regression that measures IC through the value added intellectual coefficient. Social network analysis is used to measure KS in the users' network on Twitter for EC campaigning. Specifically, the authors consider the information users exchange on social networks as a proxy of KS and identify the hubs influencing information dissemination, the size and strength of networks for each EC campaign. Finally, the success rate of EC campaigns is a ratio of the number of positive campaigns to the total number of campaigns for each platform.

The success rate of EC campaigns is positively related to IC and significantly and positively related to the number of connections the EC platforms have.

The positive relationship between the hub role of social network platforms and the success of EC campaigns provides an important signal to crowdfunding operators. As more potential investors focus on an EC campaign, a bandwagon effect could involve uninformed investors. This result is crucial in order to better understand how social media activity affects crowdfunding success.

Although the literature has examined the impact of KS on general firm performance and the mediating role of intellectual capital, no prior studies have examined the impacts of KS and IC on the success rate of EC campaigns in a specific market.

Multiple crowdfunding platforms have been created over the last decade. Some have become extremely successful, but many others have failed. This study focuses on those strategic choices that founders of crowdfunding platforms need to make early on and which determine the basic characteristics of a platform. Specifically, it examines which combination(s) of these initial strategic choices shape(s) the survival of a platform.

Qualitative comparative analysis is used to analyze the design configurations that are especially relevant for the long-term survival of crowdfunding platforms. Several robustness checks are performed. The empirical setting consists of a unique dataset of all crowdfunding platforms created in Spain over a period of ten years.

Ten configurations are obtained (four in the case of reward and donation platforms, and six for equity and lending), suggesting different paths to platform survival. Although equity and lending platforms tend to be more likely to survive than donation and reward platforms, the type of platform is not definitive. Another interesting observation is that when platforms fail, they do so quite fast.

We acknowledge that strategic choices are a combination of different elements; therefore, our approach offers a holistic view that mirrors the heterogeneity of resources and capabilities of entrepreneurs. Our study derives a different set of recommendations for lending and equity platforms than for reward and donation platforms, underlining the importance of designing and treating each type of platform in a particular way.

Most crowdfunding literature has the individual crowdfunding project as the main level of analysis. Research to date has focused on the characteristics that projects must possess to succeed. The present study explores differences at the platform level. Our research brings new evidence on some of the decisions entrepreneurs need to confront when starting a crowdfunding platform and provides useful recommendations that might help them increase the chances of survival for their platform.