Crowdfunding Models: Keep-It-All vs. All-Or-Nothing

摘要: Reward-based crowdfunding campaigns are commonly offered in one of two models. The “Keep-It-All” (KIA) model involves the entrepreneurial firm setting a fundraising goal and keeping entire amount raised, regardless whether or not they meet their goal, thereby allocating risk to crowd when an underfunded project goes ahead. “All-Or-Nothing” (AON) nothing unless is achieved, shifting entrepreneur. We show that small, scalable projects more likely be funded through KIA scheme, while large non-scalable AON scheme. Overall, less successful meeting goals, consistent with risk-return tradeoff for entrepreneurs, where opting scheme represents return entrepreneur.