Counting Your Chickens Before They Hatch - How to Manage Rapid Venture Growth Ensuing from “Blockbuster” Crowdfunding Campaigns

Abstract: Research Problem:​ While research on rapid venture growth has mostly focused on high-growth firms in later stages of development, the topic has become increasingly important to understand for new ventures as well. With the establishment of crowdfunding as an alternative source of financing, companies have access to tools that enable quick expansion of their marketing, funding and distribution capabilities that can speedily result in phases of rapid venture growth. As examples of companies that ceased to exist after a Blockbuster Kickstarter campaigns show, this phenomenon can be a double-edged sword for new ventures that fail to manage the risks and challenges associated with rapid venture growth. Research Aims​: Our aim in this thesis is to gain an in-depth understanding of the challenges arising in the aftermath of an overly successful Kickstarter campaign and analyse the strategies companies applied to overcome these challenges. Ultimately, we aim to provide insights into how new ventures manage rapid venture growth as a consequence of crowdfunding or due to other circumstances. Method​: We deploy a qualitative, comparative study approach, juxtaposing the applied strategies and concepts of six companies that continued to experience rapid growth after conducting a Blockbuster campaign on Kickstarter. Results:​ Based on the insights gained we provide an introduction into the general mindset of ventures that are managing rapid venture growth. We identify overarching concepts that guide these entrepreneurs in the areas of strategic management, company structure and growth management. Implications:​ Our results provide theoretical implications for how rapid growth can be studied in new ventures, the concept of the liability of rapid growth and the interrelatedness of the outcome of growth and the growth process research strands. Practical implications include guiding principles for new ventures inside and outside the crowdfunding context.