Venture Signals and Social Media Buzz in Crowdfunding: Are "Buzzworthy" Projects Worth the Hype?

Entrepreneurs signal the worth of their ventures using the technological capabilities of their crowdfunding platforms. Additionally, social media allows others to create "buzz" about the venture, which can also influence funding outcomes. Moreover, these two antecedents can interact with each other, whereby venture signals are either amplified or diluted by buzz about the project. Our study examined how the effects of technological cues and social media "buzz" about a crowdfunded venture affect its success. Our results indicate a differential effect of "buzz" -- depending on the social media platform and the type of signal conveyed -- on crowdfunding success.