Donor Retention in Online Crowdfunding Communities: A Case Study of DonorsChoose.org

Online crowdfunding platforms like DonorsChoose.org and Kickstarter allow specific projects to get funded by targeted contributions from a large number of people. Critical for the success of crowdfunding communities is recruitment and continued engagement of donors. With donor attrition rates above 70%, a significant challenge for online crowdfunding platforms as well as traditional offline non-profit organizations is the problem of donor retention. We present a large-scale study of millions of donors and donations on DonorsChoose.org, a crowdfunding platform for education projects. Studying an online crowdfunding platform allows for an unprecedented detailed view of how people direct their donations. We explore various factors impacting donor retention which allows us to identify different groups of donors and quantify their propensity to return for subsequent donations. We find that donors are more likely to return if they had a positive interaction with the receiver of the donation. We also show that this includes appropriate and timely recognition of their support as well as detailed communication of their impact. Finally, we discuss how our findings could inform steps to improve donor retention in crowdfunding communities and non-profit organizations.Comment: preprint version of WWW 2015 pape

Predicting outcomes in crowdfunding campaigns with textual, visual, and linguistic signals

This paper introduces a neural network and natural language processing approach to predict the outcome of crowdfunding startup pitches using text, speech, and video metadata in 20,188 crowdfunding campaigns. Our study emphasizes the need to understand crowdfunding from an investor’s perspective. Linguistic styles in crowdfunding campaigns that aim to trigger excitement or are aimed at inclusiveness are better predictors of campaign success than firm-level determinants. At the contrary, higher uncertainty perceptions about the state of product development may substantially reduce evaluations of new products and reduce purchasing intentions among potential funders. Our findings emphasize that positive psychological language is salient in environments where objective information is scarce and where investment preferences are taste based. Employing enthusiastic language or showing the product in action may capture an individual’s attention. Using all technology and design-related crowdfunding campaigns launched on Kickstarter, our study underscores the need to align potential consumers’ expectations with the visualization and presentation of the crowdfunding campaign

Estimating Early Fundraising Performance of Innovations via Graph-based Market Environment Model

Well begun is half done. In the crowdfunding market, the early fundraising performance of the project is a concerned issue for both creators and platforms. However, estimating the early fundraising performance before the project published is very challenging and still under-explored. To that end, in this paper, we present a focused study on this important problem in a market modeling view. Specifically, we propose a Graph-based Market Environment model (GME) for estimating the early fundraising performance of the target project by exploiting the market environment. In addition, we discriminatively model the market competition and market evolution by designing two graph-based neural network architectures and incorporating them into the joint optimization stage. Finally, we conduct extensive experiments on the real-world crowdfunding data collected from Indiegogo.com. The experimental results clearly demonstrate the effectiveness of our proposed model for modeling and estimating the early fundraising performance of the target project

Will Your Project Get the Green Light? Predicting the Success of Crowdfunding Campaigns

Capital is always essential for a business project over times. After emerging in 2000, crowdfunding gradually becomes one of the most popular fundraising resources. However, the mechanism of crowdfunding significantly differs from traditional capital-collecting approaches. As long as the amount of pledged money reaches the goal in time, the project succeeds, its initiator receives the funds, the platform gains the revenue, and its backers acquire rewards. Reaching the goal by deadline becomes an important issue. The goal of our study is to develop an effective technique for predicting whether a crowdfunding campaign will succeed or fail. On the basis of a dataset collected from Kickstarter, our empirical evaluation results suggest that our proposed technique significantly outperforms the benchmark method. In addition, with the use of time-dependent factors, the prediction accuracy improves from 72.89% at day 0 to 87.13% at the first day and eventually to 89.62% at day 7

Crowdlending: mapping the core literature and research frontiers

[EN] Peer-to-peer (P2P) lending uses two-sided platforms to link borrowers with a crowd of lenders. Despite considerable diversity in crowdlending research, studies in this area typically focus on several common research topics, including information asymmetries, social capital, communication channels, and rating-based models. This young research field is still expanding. However, its importance has increased considerably since 2018. This rise in importance suggests that P2P lending may offer a promising new scientific research field. This paper presents a bibliometric study based on keyword co-occurrence, author and reference co-citations, and bibliographic coupling. The paper thus maps the key features of P2P lending research. Although many of the most cited papers are purely financial, some focus on behavioral finance. The trend in this field is toward innovative finance based on new technologies. The conclusions of this study provide valuable insight for researchers, managers, and policymakers to understand the current and future status of this field. The variables that affect new financial contexts and the strategies that promote technology-based financial environments must be investigated in the future.Open Access funding provided thanks to the CRUE-CSIC agreement with Springer Nature.Ribeiro-Navarrete, S.; Piñeiro-Chousa, J.; López-Cabarcos, MÁ.; Palacios Marqués, D. (2022). Crowdlending: mapping the core literature and research frontiers. Review of Managerial Science. 16(8):2381-2411. https://doi.org/10.1007/s11846-021-00491-82381241116

Success Factors of Donation-Based Crowdfunding Campaigns: A Machine Learning Approach

Crowdfunding has emerged as an alternative mechanism to traditional financing mechanisms in which individuals solicit financial capital or donation from the crowd. The success factors of crowdfunding are not well-understood, particularly for donation-based crowdfunding platforms. This study identifies key drivers of donation-based crowdfunding campaign success using a machine learning approach. Based on an analysis of crowdfunding campaigns from Gofundme.com, we show that our models were able to predict the average daily amount received at a high level of accuracy using variables available at the beginning of the campaign and the number of days it had been posted. In addition, Facebook and Twitter shares and the number of likes, improved the accuracy of the models. Among the six machine learning algorithms we used, support vector machine (SVM) performs the best in predicting campaign success