Remarkable advocates: An investigation of geographic distance and social capital for crowdfunding

This study investigates the advocates of crowdfunding projects. Advocates refer to individuals who have invested in a project, and the information of such endorsement is spread through their social networks. By using a combined set of sizable data, this research empirically examines the relationships between two attributes of advocates, namely their geographical distance and social capital, and funding performance. Results reveal that higher funding can be secured with advocates who are (1) of further geographical distance and (2) of higher social capital. Additionally, the relationship between advocates' social capital and funding performance is further enhanced with a lower geographical propinquity.