The impacts of fundraising periods and geographic distance on financing music production via crowdfunding in Brazil

Resumo

We conduct an analysis of 1835 pledges to 10 music production projects hosted on the largest Brazilian crowdfunding platform, namely the Catarse Web site, and we assess the relation between the fundraising accumulation period, the donor–entrepreneur distance and the propensity of donors 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.

Ficha do documento

Tipo

Artigo científico

Ano

2015

Instituição

Journal of Cultural Economics

Fonte

Repositório da FGV

Idioma

Inglês

Acesso

Acesso aberto

Identificador

oai:repositorio.fgv.br:10438/19129

Palavras-chave

Brazilian musicCrowdfundingFinancial innovationGeographic dispersionFundraising periodSocial networksAdministração de empresasCrowdfunding - BrasilLevantamento de fundosProjetos culturaisMúsica brasileira