The role of geographical clusters in the success of reward-based crowdfunding campaigns

Crowdfunding is a relatively new phenomenon, which disrupted the classic way to fund a venture. It consists in retrieving the capital needed to start an entrepreneurial activity drawing funds from a large base of small investors - generally common people - rather than from the traditional financial sources. Although many studies have been conducted on this topic, little focus has been put on the geography of this phenomenon. This article addresses this issue analysing whether regions characterized by the presence of geographical clusters are able to raise the probability of a successful crowdfunding campaign for projects located there. Drawing on a data set of 792 crowdfunded projects, we conduct an empirical study aimed at studying the role played by geographical clusters in fostering the crowdfunding of new entrepreneurial ventures. The results offer insights into the phenomenon of crowdfunding and shed light on the role of geographical clusters in the success of reward-based crowdfunding campaigns of early-stage entrepreneurial projects.