This paper examines the interplay among crowdfunding campaigns, social media activity and accumulated capital. We construct a panel dataset that incorporates information about crowdfunding campaigns hosted at one of the worlds largest reward- based crowdfunding platforms, IndieGoGo, as well as social media activities relating to the campaign, collected from Twitter and Facebook APIs. We demonstrate that, while social media activities matter in general, buzz on Twitter is more influential for campaigns that intend to produce private goods, because Twitter is more likely to be used for objective information gathering and is therefore a better source for information about product or service quality. In contrast, sharing activities on Facebook are more influential for campaigns that aim to supply a public good, because Facebook primarily supports connections, and thus provides the conditions necessary for the manifestation of social norms. We discuss the theoretical implications for the literatures on social media and crowdfunding.
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