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ndeed, Agrawal, Catalini, and Goldfarb (2011) show that the localization bias in funding activity on Sellaband is virtually eliminated after controlling for social relationships (friends and family).

Overall, funding is not localized: A full 86% of capital for successfully financed projects came from individuals who were more than 60 miles away from the creator, and the average distance between creators and funders was approximately 3,000 miles. Thus, it is plausible that crowdfunding may be particularly important as a mechanism to finance projects in regions that have disproportionately less access to financial capital relative to their stock of human capital.
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