Purpose The purpose of this paper is to probe how reward-based crowdfunding campaigns accomplish their goal by adopting the theoretical constructs of social capital dimensions: structural, cognitive and relational. Design/methodology/approach The approach used is a design model for concluded campaigns in a Mexican crowdfunding platform, which determines social capital from operating social networks (Facebook and Twitter). By using this model, the associations between the dimensions are revealed, verifying how social capital flourishes during the campaign and how it alters the campaign’s outcome. Findings The findings demonstrate how social interaction through a wide social network (structural dimension), shared vision and values among entrepreneurs and their potential funders (cognitive dimension), and the development of trustworthiness within the campaign (relational dimension) boost the probability of achieving the crowdfunding goal. Research limitations/implications The results inform researchers on how social capital is forged from social networks during a crowdfunding campaign. However, the method must be validated with other crowdfunding models and other social network platforms commonly used by campaign creators. Practical implications Contributions from this paper include tools (design model and evaluation method) associating theory with the crowdfunding mechanism, complementing previous work. Crowdfunding providers, as well as campaign creators, have now an approach to appraise social capital and obtain the desired goal. Originality/value In addition to providing much-needed research on the current state of crowdfunding, this paper analyzes the link between practice and theory, which can be valuable in confining the mechanism to an accurate theory and ensuring the theory’s longevity.

The purpose of this paper is to understand for the first time how inexperienced investors invest in high-risk new ventures in Mexico through a crowd-investing platform. Research Design & Methods: The study follows a qualitative approach based on case studies. We developed our case study design from theoretical propositions which also guided the case study analysis. The in-depth interviews with investors revolved around investors' motives for investing and the way they evaluated investment opportunities in new ventures. Findings: The study shows that novice investors in Mexico invest in crowd-investing not because of financial motivations but because they want to learn how to finance private companies and to live an exciting experience. In addition, their investment decisions are based on intuition to recognize the right people for the project and on their business experiences to assess the growth potential of the new venture. Contribution & Value Added: To date, there is limited research on investors' behaviour in crowd-investing markets. This research presents academics and practitioners with valuable insights into factors that influence the decision-making process of crowd-investing investors. Article type: research paper