Venture Investors’ Monitoring and Product Innovation Performance in Serial Crowdfunding Projects: An Empirical Test

An increasing number of entrepreneurs have used crowdfunding to raise funds for their startups. While crowdfunding has attracted many entrepreneurs and investors, serial crowdfunding provides a new way to meet the financing needs of startups at different stages of development. Based on 281 serial crowdfunding projects that have raised funds in three key crowdfunding networks in China, this study investigates the impact of venture investors’ monitoring of crowdfunding projects on product innovation performance in the follow-up projects. The results show that venture investors’ monitoring of crowdfunding projects has a positive impact on product innovation in the follow-up projects, and the financing performance mediates the relationship between venture investors’ monitoring and product innovation. This result can help venture capital better understand the impact of crowdfunding projects on financing performance and further on product innovation in follow-up projects, which will have important practical implications. The findings of this study can also help increase the popularity crowdfunding as a new financing tool in China.