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© 2026 IJSREM – International Journal of Scientific Research in Engineering and Management. This is an open-access journal. Articles are published under the Creative Commons Attribution (CC BY 4.0) License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

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Paper ID:IJSREM67211

The Impact of Social Media Marketing on Startup Funding Success: The Mediating Effects of Brand Positioning and Investor Trust

Stream/Area:

-

Subject:

-

Paper ID:

IJSREM67211

Volume:

10 |

9 |

Sep 2026

Pages:

1-10

Publication Frequency:

Monthly (12 issues per year)

DOI
Digital Object Identifier
10.55041/IJSREM67211

License:International Journal of Scientific Research in Engineering and Management follows the Creative Commons Attribution 4.0 (CC BY 4.0) License, allowing free use and distribution with proper attribution.

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Authors

DBM

Dr. BINOY MATHEW

Management Studies (MBA)

Centre for Post Graduate Studies, Muddenahalli, Chikkaballapur

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VGSP

Vishwas Gowda S P

Management Studies (MBA)

Centre for Post Graduate Studies, Muddenahalli, Chikkaballapur

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GG

Gayathri G

Management Studies (MBA)

Centre for Post Graduate Studies, Muddenahalli, Chikkaballapur

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Abstract

This study investigates the impact of social media marketing on startup funding success, with particular attention to the mediating effects of brand positioning and investor trust. As startups increasingly rely on digital platforms to attract venture capital and crowdfunding, understanding the mechanisms through which social media activities translate into funding outcomes becomes critical. Drawing on social capital theory and signaling theory, this research proposes a conceptual framework that positions brand positioning and investor trust as sequential mediators in the relationship between social media marketing activities and funding success. Through a comprehensive review of 16 empirical studies and theoretical contributions, this paper synthesizes existing knowledge and develops testable propositions. The findings suggest that social media marketing influences funding success through both direct pathways—enhancing visibility and reach—and indirect pathways—establishing credible brand positioning that subsequently builds investor trust. The study contributes to entrepreneurship and digital marketing literature by clarifying the mediating mechanisms and offers practical implications for startup founders, investors, and platform designers.

KEYWORDS

social media marketing startup funding brand positioning investor trust crowdfunding venture capital.

Cite This Article

Dr. BINOY MATHEW, Vishwas Gowda S P, Gayathri G, "The Impact of Social Media Marketing on Startup Funding Success: The Mediating Effects of Brand Positioning and Investor Trust," International Journal of Scientific Research in Engineering and Management, vol. 10, no. 9, pp. 1-10, Sep 2026. https://doi.org/10.55041/IJSREM67211

Full Article/Conclusion

This study has examined the impact of social media marketing on startup funding success, with particular attention to the mediating effects of brand positioning and investor trust. Through systematic review of existing literature, the study develops a conceptual framework that specifies how social media activities translate into funding outcomes through sequential mediation mechanisms. The findings suggest that social media marketing influences funding success through both direct pathways—enhancing visibility and reach—and indirect pathways—establishing brand positioning that builds investor trust. This integrated framework advances theoretical understanding by specifying the mechanisms through which social media activities influence investor behavior, and offers practical guidance for entrepreneurs seeking to leverage digital platforms for fundraising. As social media continues to transform entrepreneurial finance, understanding these mechanisms becomes increasingly important for both researchers and practitioners. Future research should empirically test the proposed propositions and investigate contextual factors that may moderate the relationships examined. By advancing knowledge in this domain, researchers can contribute to more effective and equitable access to capital for entrepreneurs worldwide.

References

Park, S. Y., & Loo, B. T. (2022). The use of crowdfunding and social media platforms in strategic start-up communication: A big-data analysis. *International Journal of Strategic Communication*, *16*(2), 313–331. https://doi.org/10.1080/1553118X.2022.2032079   Gartner, J., & Moro, A. (2025). The quest for trust in decentralised finance: Screening ownership in high tech start-ups. *Academy of Management Proceedings*, *2025*(1), 356bp. https://doi.org/10.5465/AMPROC.2025.356bp   Li, Y. (2023). *Two essays on the role of marketing in new venture investments* [Doctoral dissertation, Texas Tech University]. Texas Tech University Libraries. https://hdl.handle.net/2346/96370   Sidhu, N. K., Bathla, D., Sharma, S., & Bhatia, H. S. (2023). Simple Kaur: The growth of start-ups through the adoption of sustainable fashion, technological innovation, and social media marketing. In *Cases on entrepreneurship and innovation* (pp. 1–14). IGI Global. https://doi.org/10.4018/978-1-6684-8488-3.ch004   G.P., G., & Ghosh, S. (2020). Dynamics between digital visibility through social media marketing and crowdfunding: Path to succeed in entrepreneurship. *Semantic Scholar*. https://www.semanticscholar.org/paper/Dynamics-between-Digital-Visibility-through-Social-G.G-Ghosh/38af1dc808facacbe8372a76ece414e020e8356f   Peixoto, A. R., Almeida, A. D., & António, N. (2024). *Tweeting the startup journey: How Twitter data outlines startup life cycle phases* (pp. 1–44). Social Science Research Network. https://doi.org/10.2139/ssrn.4870171   Brussee, R., & Hekman, E. (2013). Crowdfunding and online social networks. *Semantic Scholar*. https://www.semanticscholar.org/paper/Crowdfunding-and-Online-Social-networks-Brussee-Hekman/d379fb712ea7ff5b49c8a402f21b8a20764111d1   Vismara, S. (2018). Information cascades among investors in equity crowdfunding. *Entrepreneurship Theory and Practice*, *42*(3), 467–497. https://doi.org/10.1111/etap.12261   Mollick, E. (2014). The dynamics of crowdfunding: An exploratory study. *Journal of Business Venturing*, *29*(1), 1–16. https://doi.org/10.1016/j.jbusvent.2013.06.005   Ahlers, G. K. C., Cumming, D., Günther, C., & Schweizer, D. (2015). Signaling in equity crowdfunding. *Entrepreneurship Theory and Practice*, *39*(4), 955–980. https://doi.org/10.1111/etap.12157

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Publication Date

9/11/2026

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