Geographic Distance and Reward Crowdfunding Donation

  • Wesley Mendes-Da-Silva
  • Luciano Rossoni
  • Eduardo Francisco
  • Cristiane C. Gattaz


This chapter describes the analysis of a large crowdfunding platform to examine pledges to music production projects and assess the relation between the fundraising accumulation period, the donor-entrepreneur distance, and the donors’ propensity to back projects. Our results suggest a significantly negative association between distance and the value of capital pledged to projects, which is consistent with the notion that the entrepreneur’s network of close contacts might play a central role in funding. Furthermore, our results contradict the idea that crowdfunding reduces the inhibiting effect of donor-entrepreneur distance. In addition, the results show that a long project exposure is associated with higher values of pledges. These results suggest practical implications for the study of crowdfunding as a financing platform. This study contributes to the literature on the use of crowdfunding as an alternative funding source in a major emerging market.


Fintech Crowdfunding Fundraising Social networks 

JEL Code

A13 D85 L14 


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Copyright information

© Springer International Publishing AG, part of Springer Nature 2019

Authors and Affiliations

  • Wesley Mendes-Da-Silva
    • 1
    • 2
  • Luciano Rossoni
    • 3
  • Eduardo Francisco
    • 4
  • Cristiane C. Gattaz
    • 5
  1. 1.Sao Paulo School of Business Administration (FGV/EAESP)Sao PauloBrazil
  2. 2.University of Texas at AustinAustinUSA
  3. 3.Department of ManagementUniGranRioRio de JaneiroBrazil
  4. 4.Department of Business EconomicsFundação Getulio Vargas at São Paulo (FGV/EAESP)Sao PauloBrazil
  5. 5.IC² Institute/University of Texas at AustinAustinUSA

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