ABSTRACT
Projects that do achieve legitimacy do not generally benefit from a ‘tipping point’ model of broad acceptance.
3.4 The role of narrative in establishing crowdfunding legitimacy Cultural entrepreneurship theory emphasises that the subjective perception of the firm to external agents, regardless of the objective value of the firm’s resource stock, may be essential to legitimisation and ultimate resource assembly (Lounsbury and Glynn 2001). This contrasts with bounded rationality approaches to venture capital investment that rely on models of risk minimisation and management (Zimmerman and Zeitz 2002). When risks are not easily quantified at new ventures, ‘stories can provide needed accounts that explain, rationalise, and promote a new venture to reduce the uncertainty typically associated with entrepreneurship’ (Lounsbury and Glynn 2001, 546).
