Direct and Configurational Paths of Capital Signals to Technology Crowdfunding Fundraising

Abstract

In reality, symmetric relations cannot informatively explain the causal complexity due to non-100% linear observable relationships. However, asymmetric relations are seldom discussed in crowdfunding fundraising. Based on the signaling theory and start-up quality, this article uses symmetric (logistics regression and negative binomial regression) and asymmetric analyses (fuzzy-set qualitative comparative) to explain the causal complexity of intellectual, human, and social capital signals in technology project fundraising. This article tests data collected from 516 technology projects in reward-based crowdfunding in China. As a result, symmetric analysis partly supports hypotheses from symmetric relations. However, asymmetric analysis indicates that uncorrelated capital signals in the symmetric analysis are active conditions in configurations to funding success and performance. Furthermore, asymmetric analysis supports that social capital signals are more important than intellectual capital signals and human capital signals. Non-third-party authorized signals are more important than third-party authorized signals in fundraising. Social connection between investors and start-ups is also the necessary social capital signal for funding success. These findings highlight the importance of joint effects of capital signals on crowdfunding fundraising, thus enriching the understanding of start-up quality and signals, third-party endorsement, unprofessional investors, and the high-noise environment of crowdfunding.