【Watch A Taste of Experience Online】

Kickstarter projects are Watch A Taste of Experience Onlinehaving real impact, according to a new study.

The success of crowdfunding platforms and projects completed through those platforms has helped to expand investment by venture capitalists outside Silicon Valley, University of California — Berkeley and Yale University researchers found.

When Kickstarter projects in areas of the country that don't see interest from venture capitalists succeed, investors seem to become more interested in those parts of the country. Successful crowdfunding campaigns attract VC interest both to the people running campaigns outside major tech hubs and to those parts of the country in general.

Original image has been replaced. Credit: Mashable

"VCs are demanding successful crowdfunding campaigns as proof," said study author Lee Fleming, faculty director of the Coleman Fung Institute for Engineering Leadership at UC Berkeley. "It's almost like a market test when they're looking at potential investments."

A 1 percent increase in the number of Kickstarter campaigns in a region in one year predicted a 0.097 percent increase in venture capital interest the following year, the study found.

The study focused on Kickstarter and did not include other crowdfunding platforms. Within Kickstarter, researchers honed in on the campaigns — mainly tech projects — that would be of interest to traditional Silicon Valley investors. They discounted Kickstarter's many arts-centric crowdfunding campaigns, like ones to fund the making of a film.

Mashable Trend Report Decode what’s viral, what’s next, and what it all means. Sign up for Mashable’s weekly Trend Report newsletter. By clicking Sign Me Up, you confirm you are 16+ and agree to our Terms of Use and Privacy Policy. Thanks for signing up!

The study also pared down VC investments to small investments in early-stage companies that would be most similar to crowdfunding initiatives. Researchers eliminated areas of investment, like biotech, that cannot be funded on Kickstarter.

"As [crowdfunding] has gained legitimacy and entrepreneurs have learned how to use [crowdfunding] platforms, it may increasingly become a complementary source of funds to VC," the study's authors wrote in an article in the journal Science.

This research hasn't yet answered a few remaining questions: Are there particular types of VCs who are paying attention to crowdfunding? Within the category of tech, are particular crowdfunded projects getting attention from investors?

But it has shown that crowdfunding has the potential to make investment more accessible to Americans outside the Bay Area.

"If these trends continue, the rise of [crowdfunding] may not only fund more innovation in a more diverse set of places but also expand access to VC and other forms of finance in these same regions," the authors wrote.

"All regions and all people have ideas, and crowdfunding is enabling those people to get some funding for those ideas," Fleming said. "After they develop successful ones, they become candidates for VC investment."

---

Featured Video For You

---

Hand-powered centrifuge costs only 20 cents, can diagnose diseases

---

• Deals
• Life
• Social Good
• Science
• Entertainment
• Shopping
• Tech
• Digital Culture

• Dell S3422DWG Gaming Monitor deal: save $100 at Amazon
• Hollywood's scariest supercomputer joins the Amazon Alexa family
• RIP Claire's, the purest store in any mall
• Hollywood's scariest supercomputer joins the Amazon Alexa family
• President Trump says semiconductor tariffs are next
• John Krasinski's 'A Quiet Place' will make you scream
• Apple patents a crumb
• Why are there so few published female scientists?
• NYT mini crossword answers for May 9, 2025
• Amazon updates Alexa so you don't have to say 'Hey, Alexa' repeatedly

• Meet Sad Cowboy, the most tragic figure in the Wild West
• No, Emma González did not rip up the U.S. Constitution
• Trump's social network has 30 days to comply with Mastodon's license... or else
• People brought their pups to 'Isle of Dogs,' and here are the photos
• Today in optical illusions: There's no need to worry about this corgi
• Best smart video calling deal: Save £100 on all
• Kim Kardashian's 'Photoshop fail' apparently wasn't what it seemed
• Ladies and gentlemen, the viral Twitter account of 'SNL' hosts introducing musical guests
• 10 best kitchen gadgets for #soupseason
• Global antibiotic use is rising, spurring more antibiotic resistance

• Apple iPhone 17 Pro leaks highlight major new design change
• From space, the third nor'easter in 2 weeks is seen pummeling Boston
• Maisie Williams almost missed her 'Game of Thrones' audition to go to a pig farm
• Apple might release AirPower wireless charging pad by the end of March
• Hurricane Laura's impact lingered with nightmarish mosquito swarms
• Sign about Iceland's penis museum goes viral on Twitter
• 'Thoroughbreds' is a cinematic rarity and well worth watching
• Scientists find rare type of ice, dubbed Ice
• Exceptionally rare radio sources detected in the distant universe
• Zooey Deschanel is new Belle in 'Beauty and the Beast' live concert

• Analyzing Graphics Card Pricing: May 2018
• Australia's Defence department bans messaging app WeChat
• This tweet about putting your last text on your tombstone has got some incredible results
• The Nintendo Switch is the best console for gaming in comfort
• NYT Strands hints, answers for May 5
• Your iPhone obsession may be forcing Apple into a race with carmakers
• The Nintendo Switch is the best console for gaming in comfort
• Third nor'easter in 3 weeks to hit New England: What's going on here?
• Is it 'Thunderbolts*' or *The New Avengers'?
• How come Queer Eye's Antoni smells weird sh*t every episode