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International crowdfunding platforms like Kickstarter have transformed the way entrepreneurs seek financing. Today, they bring together both those launching their first campaign and those who return repeatedly to fund new projects. However, although we know quite a bit about what makes these campaigns successful, we still understand little about why some entrepreneurs return to the platform while others do not. Our study, carried out by Ahmed Sewaid, Shaker Zahra, and Sebastian Aparicio, addresses precisely this question, analyzing 177,499 campaigns across 25 countries to understand how national institutions—rules governing credit, investor protection, and insolvency procedures—influence the decision to relaunch a campaign.

The results show that institutions are not just background conditions: they concretely shape entrepreneurs’ behavior. In countries where obtaining a loan is easy, first-time campaigners have fewer incentives to rely on crowdfunding again. In these cases, the first campaign acts as a portfolio piece that helps them access traditional financing. In contrast, when access to credit is difficult—especially in emerging economies—, crowdfunding becomes a more necessary alternative, and entrepreneurs tend to return.

But the story changes when we examine serial entrepreneurs, those who have already relaunched at least once. For them, ease of access to credit stops being relevant. Instead, other institutions begin to matter more: on the one hand, laws protecting minority investors, which seem to motivate experienced entrepreneurs to keep using crowdfunding; and on the other, insolvency regulations. In countries where closing a failed business is straightforward and inexpensive, experienced entrepreneurs rely less on the early “testing” that crowdfunding provides and feel less need to launch additional campaigns.

The study reveals that crowdfunding is not only a matter of creativity or entrepreneurial talent. It also reflects how each country structures its financial and legal systems. Understanding this interaction helps explain why some entrepreneurs turn crowdfunding into a habit, while others use it only once. And, above all, it shows that global platforms do not operate in a vacuum: behind every campaign is an entrepreneur making decisions shaped by the rules of their environment. This institutional lens can open new questions and guide better public policies on entrepreneurship and alternative financing.