This article follows the progress of a large and nationally representative sample of American nascent entrepreneurs identified in the initial interview of the Panel Study of Entrepreneurial Dynamics (PSED) over the next 12 months of the panel. We develop a novel theoretical framework based on...

Do higher proportions of (a) informed investors and (b) high-quality projects increase the number of good projects that are ultimately financed via crowdfunding? A simple model and simulation reveals the answers to both questions to be: "not necessarily".