Crowdfunding models: Keep-It-All vs. All-Or-Nothing

Douglas Cumming, Gaël Leboeuf, Armin Schwienbacher

Research output: Contribution to journalArticlepeer-review

44 Citations (Scopus)


Reward‐based crowdfunding campaigns are commonly offered in one of two models via fundraising goals set by an entrepreneur: “Keep‐It‐All” (KIA), where the entrepreneur keeps the entire amount raised regardless of achieving the goal, and “All‐Or‐Nothing” (AON), where the entrepreneur keeps nothing unless the goal is achieved. We hypothesize that AON forces the entrepreneur to bear greater risk and encourages crowdfunders to pledge more capital enabling entrepreneurs to set larger goals. We further hypothesize that AON is a costly signal of commitment for entrepreneurs yielding a separate equilibrium with higher quality and more innovative projects with greater success rates. Empirical tests support both hypotheses.
Original languageEnglish
Pages (from-to)331-360
Number of pages30
JournalFinancial Management
Issue number2
Early online date8 Jan 2019
Publication statusPublished - Jul 2020

ASJC Scopus subject areas

  • Accounting
  • Finance
  • Economics and Econometrics


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