The Effect Of Crowdfunding On The Resource Assembly Process During And After Venture Formation

Crowdfunding presents a potentially novel approach to entrepreneurial resource assembly. To date, however, limited research has considered either the underlying processes or the follow-on financing implications of crowdfunding activities. In our research we investigate crowdfunding by applying the resource-based view. To explore the effect of crowdfunding on downstream financing opportunities and its impact on the firms' long-term resource assembly process, we conducted two interviews with entrepreneurs who successfully obtained financing through crowdfunding. Preliminary key findings include: (1) the crowd of investors is not utilized constructively by entrepreneurs in order to acquire other resources than financial capital, and (2) the increasing number of investors is not understood as a limitation by the start-up firm for future downstream finance opportunities.