APAKAH ISI PROSPEKTUS MENENTUKAN KEBERHASILAN EQUITY CROWDFUNDING (ECF)?

Penelitian ini bertujuan untuk menganalisis apakah isi prospektus berkaitan dengan keberhasilan online equity crowdfunding (ECF) di Indonesia. Peneliti menggunakan sampel pada platform 62 bisnis atau penerbit yang listing di platform Santara di tahun 2021. Teknik analisis yang digunakan di dalam penelitian ini adalah regresi berganda. Hasil pengujian menunjukkan bahwa deskripsi bisnis memiliki efek positif pada keberhasilan ECF, sedangkan jumlah gambar dalam prospektus memiliki efek negatif. Di sisi yang lain, penggunaan uang, status proyek, dan deskripsi risiko bisnis tidak berpengaruh pada keberhasilan ECF. Hasil penelitian ini menjadi rekomendasi bagi perusahaan yang ingin menampilkan profilnya di platform ECF untuk meningkatkan kualitas prospektusnya, terutama dalam deskripsi perusahaan di prospektus. Perusahaan juga harus berhati-hati dalam penggunaan gambar yang terlalu banyak di prospektus, karena hal tersebut dapat membuat hilangnya fokus calon investor saat membaca prospektus

Crowdfunding in Russia : an empirical study

The beginning of crowdfunding in Russia is associated with a launch of the crowdfunding platform for creative projects Kroogi. Although it has been 10 years since Kroogi was established, we have to admit that crowdfunding in Russia remains a comparatively small and local market. Definitely, the Russian crowdfunding industry has experienced substantial fluctuations, but nowadays it shows sustainable growth and both market players and the regulator believe in its prospective, so that new players appear, new regulations are expected. In 2017, the biggest Russian crowdfunding platform Planeta.ru celebrated its fifth anniversary and claimed to have raised over 770 million Russian rubles. Still, the rate of successfully funded projects is rather low. To improve the situation it is necessary to find out which crowdfunding projects potential backers are more willing to support. Within the scope of this paper we provide quantitative analysis of open data on 9 179 projects divided by 15 categories from two largest non-equity-based crowdfunding platforms in Russia. The key findings demonstrate the total funding, the largest categories by number of projects, most popular categories within the backers support, the sum of average pledges. Issues for further research and discussion are identified including factors of project success and backers’ motivation.peer-reviewe

Successful Features of Crowdfunding Campaigns: An Analysis of Requests for Coronavirus Food Relief

Crowdfunding is an emerging industry in the past decades, which proliferates and has attracted an enormous population from the public to be involved in various funding projects in multiple fields such as business entrepreneurship, healthcare, and fintech. Meanwhile, charitable crowdfunding platforms such as GoFundMe, Indiegogo, and Kickstarter have allowed internet users to provide help and donation to the fundraisers directly. As the year 2020 is surrounded by the COVID-19 global pandemic spreading out the world, the topic of coronavirus relief has surged. Thus, it is worthy of evaluating the crowdfunding campaign\u27s effectiveness during the coronavirus context by making a connection between fundraising activities and coronavirus relief. This paper aims to investigate the effects of various factors affecting a donation-based crowdfunding campaign for coronavirus relief of food donation in the United States and determine the significant factors affecting the campaign\u27s success rate. To achieve this research purpose, secondary data were extensively collected from the crowdfunding platform GoFundMe for regression analysis. The sample data was derived from crowdfunding campaigns launched from March 1st, 2020, to May 31st, 2020. During this period, the United States was severely affected by the COVID-19 pandemic with an exponentially surged number of confirmed cases. This paper derives the independent variables that have been examined from previous studies and further applies in the coronavirus context to identify whether these factors are significant influencers to the success of crowdfunding campaigns for coronavirus relief of food donation. The factors being examined include target funding amount, the existence of spelling mistakes, the presence of pictures, video, social network sites, project updates, comments between fundraisers and backers, and links to external websites. That the significant factors contributing to a successful funding project are similar, as identified in previous reward-based and equity crowdfunding studies. On the other hand, several independent variables\u27 effectiveness varied between the normal scenario and the coronavirus context, as such variables demonstrate a much compelling role to attract donors for the coronavirus relief activations. The analysis is valuable and worthy of different viewpoints. First, understanding the donor\u27s motivation and the success features of funding projects is valuable for fundraisers to have a strategic mindset for decision-making criteria when initiating funding projects to attract more donors and the amount of money. Second, because of the lack of literature focusing on examining the success features for donation-based crowdfunding campaigns, this study fills the gap and further focus on the crowdfunding activations in the context of coronavirus food relief in the US. Therefore, this study provides significant insight to understand the dynamics of the donation-based crowdfunding campaign and provides a recommendation to develop coronavirus relief more efficiently

Mitigating Information Asymmetry to Achieve Crowdfunding Success: Signaling and Online Communication

This paper examines how signals and the herding factor originating from multiple sources complement or substitute for each other’s effects in the crowdfunding context. Drawing on the elaboration likelihood model, we propose that signals from campaigns (videos) and creators (experience) can mitigate information asymmetry concerns about project quality and creator credibility and that creator-originating signals offset the effect of campaign-originating signals on crowdfunding success. Further, we posit that online communication between creators and backers (backer comments and creator replies) complements or substitutes for the effects of signals originating from the campaign or creator. We collected and analyzed objective data on 9,884 crowdfunding projects from a major reward-based crowdfunding platform in China and were able to confirm most of our hypotheses

The characteristics of Bulgarian reward-based crowdfunding campaigns

Reward-based crowdfunding is the most popular method for acquiring financial resources directly from potential users. Bulgarian entrepreneurs and small companies have the opportunity to search for funding from international online communities that are active in the biggest reward-based crowdfunding platforms as Kickstarter and Indiegogo. The proposed paper aims to examine the current state and characteristics of the Bulgarian campaigns in Kickstarter, to identify success factors for generating funds and give directions for better performance of Bulgarian entrepreneurs in reward-based crowdfunding

Co-creation, Failure Learning, and Relaunch Success: Evidence from Online Crowdfunding Market

With intense competition and relatively inexperienced founders, the crowdfunding market has reported high failure rates. However, the IT components of the crowdfunding market provide entrepreneurs with more opportunities for experimentation and trial, leading to a new phenomenon of post-failure relaunches. Research into campaign relaunch success is urgently needed but under-researched. By combining failure learning theory with a collective perspective, the present study examines how investors\u27 co-creation, in terms of advocacy and feedback, can benefit crowdfunding relaunch success directly or indirectly (by motivating founders\u27 failure learning). The study tested the proposed mediation model with 1,902 failure-relaunched Kickstarter campaigns, with most hypotheses supported. Furthermore, the study explores the role of the time interval between crowdfunding relaunch and prior release. The findings indicate that an increased time interval enhances the positive effects of founders\u27 learning efforts on relaunch success while attenuating the potential positive effects of investors\u27 advocacy, implying a tradeoff in timing decisions

Explaining Reward Crowdfunding Backers’ Intentions and Behavior

Earlier research seeking to understand crowdfunding adoption has drawn on social psychology, trust, signaling, and well-being theories. Despite its wide appeal and use, the Technology Acceptance Model (TAM) has received little attention in explaining the adoption of crowdfunding platforms. Accordingly, in the current study we examine the applicability of two versions of this framework, including the original TAM1, and the extended TAM2 frameworks. Data was collected through a survey distributed to the users of Finland’s leading reward crowdfunding website – Mesenaatti. Analyses of 556 observations exhibit support for all hypotheses underlying both TAM frameworks, with two exceptions. Counter to expectations, voluntariness does not moderate the effect of subjective norms on contribution intentions, and the effect of perceived ease-of-use is primarily mediated by perceived usefulness, rather than directly affecting intentions

What about realized returns in reward-based crowdfunding?

Crowdfunding is an alternative form of financing, especially for entrepreneurs in the early-stage development phase. It is well-known that for investors, beyond altruistic motives, material returns play a crucial role, too. A previous study in this field analyzed returns offered by founders and demanded by investors, resp., by means of a data set from kickstarter.com, a leading platform for reward-based crowdfunding. The present paper additionally looks at the realized returns from an ex post view. It does not present new empirical findings, but identifies problems and limitations in this field, and presents some suggestions for future research

Reward-based Crowdfunding Technological Projects Determinants of Success: A Quantitative Study

Crowdfunding success in terms of the achievement of target capital in reward-based crowdfunding projects is impacted by many factors (e.g., past created projects, campaign duration, pledged capital). This paper studies the determinants of success rate (pledged capital/target capital) or (P/T) in successful technological crowdfunding projects. The quantitative study started by data collection of 328 successful Kickstarter technological crowdfunding campaigns which are later decreased to 289 due to model censorship. Tobit model was adopted as the censored linear regression model to determine the existence of relationships between the dependent variable (P/T) and the independent variables. Results suggest that success rate is associated with 7 independent variables: visuals, duration, internal social capital, comments and education are found to impact success rate positively while target capital and past created projects are found to impact success rate negatively. The study contributes to the literature in crowdfunding by paving the path to study success factors that might impact successful technological projects, and to investigate the significance of backers’ feedback and project creators’ education in maximizing their campaign’s outcome

Risky Donation for Rewarding Innovation? Examining Transformation of Technology Consumers into Crowdfunding Patrons

Reward-based crowdfunding platforms transform technophilic consumers into technology patrons by enabling them to donate for technology development in lieu of receiving the finished product as reward in future. Literature specifically on crowdfunding of technologies is tenuous, and researchers have not yet established the causal factors which entice technology consumers to donate. Using Elaboration Likelihood Model as theoretical base, we conduct a 2x2x2 mixed-design experiment to examine the effects of three core elements of crowdfunding (value of reward, waiting time to receive technology, and affective cues in donor appeal) on a potential consumer’s likelihood to donate. Our results show positive impact of reward, and negative impact of waiting time, but surprisingly no effect of affective cues. Significant interaction between reward and waiting time has also been observed. Apart from theoretical contributions, the findings have tactical implications for technology start-ups planning to raise funding through donations, and design implications for crowdfunding platforms