Study explores crowdfunding and entrepreneurial failure

As means to raise capital for a business venture, crowdfunding has come increasingly to the fore since the advent of social media. A good campaign that goes viral can quickly bring adequate funds for an adventurous start-up. Writing in the International Journal of Entrepreneurial Venturing, a team from Germany suggests that this alternative to venture capital and angel investment might actually lead to overfunding of a startup and that this in itself can lead to the failure of the company.