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

A Mixed-Methods Approach to Understanding Funder Trust and Due Diligence Processes in Online Crowdfunding Investment

We report on two studies undertaken to establish the factors that affect funders’ trust and likelihood to invest in crowdfunding campaigns online. Findings from an initial small-scale qualitative study are reported and subsequently triangulated in a larger quantitative survey. Across these studies, we demonstrate the importance of social information within the peer economy, with a strong reliance on other users across the course of the investment decision-making process. Decision making on whether to invest is informed not only by the content of the crowdfunding campaign page but also by social influence factors that are present (e.g., liking of the campaigner, reciprocity). It is further shaped by due diligence checks focused on the progression of the prototype for which funding is sought, and by assurances from outside the campaign page—namely on social media. Such assurances center around the importance of social proof, garnered through opinions of previous customers or other funders. The risk here is that much of this information is content that can be faked, and as such a reliance on this may leave potential funders vulnerable. Meanwhile, a genuine lack of prior experience and customer base means that some legitimate campaigners struggle to gain trust from potential investors who are reliant on such social information. Our findings present an empirical grounding to develop future security solutions that (1) protect existing funders and (2) increase potential funders’ level of trust, to encourage their engagement with legitimate crowdfunding campaigns

Crowdfunding in German association football clubs: identifying supporters’ drivers to invest

This thesis analyses the potential of crowdlending and crowdinvesting to be a valuable financial alternative for professional football clubs in Germany. Given the increasing importance of crowdfunding in other business areas and the necessity for German football clubs to access alternative approaches to financing, the perception of football clubs and supporters with regard to crowdfunding was investigated. The question is whether the fans, who are associated with the club due to their loyalty, could become financing partners. By applying Commitment-Trust Theory, this study examines the antecedents of supporters behavioural intentions to invest and their effect on the key mediating variables of Fan Loyalty and Trust. Semi-structured interviews with financial managers of the football clubs and an online survey with fans (n = 712) were conducted. This sample data was analysed using Structural Equation Modelling. Among three rival models, the partial-mediating model was able to explain 81.4 % of the variance of the sample data. According to the results, the key driver for supporters’ Willingness to Invest is the intrinsic, other-orientated motivation called Perceived Meaningful Contribution. This study has added knowledge to theory by applying the Commitment-Trust framework to crowdfunding motivation within the context of professional German football. Furthermore, the practical contribution is derived from the recommendations for football clubs on how to frame crowdfunding campaigns by highlighting the rewarding feeling of helping their club and the meaningfulness of projects