Study: Crowdfunding backers are savvy at picking projects

05/14/2013 | Inc. online (free registration)

People who support crowdfunding projects tend to evaluate entrepreneurs with the same critical eye used by venture-capital firms, according to research by Wharton professor Ethan Mollick. He discovered that entrepreneurs are more likely to raise money through crowdfunding if they have had a history of success and highlight third-party endorsements. In addition, the study suggests that crowdfunding has less gender bias than VC selection.

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