Designed to last: crowdfunding platforms’ strategic choices for long-term survival

Purpose Multiple crowdfunding platforms have been created over the last decade. Some have become extremely successful, but many others have failed. This study focuses on those strategic choices that founders of crowdfunding platforms need to make early on and which determine the basic characteristics of a platform. Specifically, it examines which combination(s) of these initial strategic choices shape(s) the survival of a platform. Design/methodology/approach Qualitative comparative analysis is used to analyze the design configurations that are especially relevant for the long-term survival of crowdfunding platforms. Several robustness checks are performed. The empirical setting consists of a unique dataset of all crowdfunding platforms created in Spain over a period of ten years. Findings Ten configurations are obtained (four in the case of reward and donation platforms, and six for equity and lending), suggesting different paths to platform survival. Although equity and lending platforms tend to be more likely to survive than donation and reward platforms, the type of platform is not definitive. Another interesting observation is that when platforms fail, they do so quite fast. Practical implications We acknowledge that strategic choices are a combination of different elements; therefore, our approach offers a holistic view that mirrors the heterogeneity of resources and capabilities of entrepreneurs. Our study derives a different set of recommendations for lending and equity platforms than for reward and donation platforms, underlining the importance of designing and treating each type of platform in a particular way. Originality/value Most crowdfunding literature has the individual crowdfunding project as the main level of analysis. Research to date has focused on the characteristics that projects must possess to succeed. The present study explores differences at the platform level. Our research brings new evidence on some of the decisions entrepreneurs need to confront when starting a crowdfunding platform and provides useful recommendations that might help them increase the chances of survival for their platform.