Strategies for reward-based crowdfunding campaigns

Reward-based crowdfunding campaigns: informational value and access to venture capital

Emerging Dynamics in Crowdfunding Campaigns

Crowdfunding platforms are becoming more and more popular for fund-raising of entrepreneurial ventures, but the success rate of crowdfunding campaigns is found to be less than 50%. Recent research has shown that, in addition to the quality and representations of project ideas, dynamics of investment during a crowdfunding campaign also play an important role in determining its success. To furthe...

Redistributing Funds across Charitable Crowdfunding Campaigns

On Kickstarter only 36% of crowdfunding campaigns successfully raise sufficient funds for their projects. In this paper, we explore the possibility of redistribution of crowdfunding donations to increase the chances of success. We define several intuitive redistribution policies and, using data from a real crowdfunding platform, LaunchGood, we assess the potential improvement in campaign fundra...

Which Reward Should I Choose? Preliminary Evidence for the Middle-Option Bias in Reward-Based Crowdfunding

Crowdfunding has become an important research area, but we know little about how rewards influence fundraising success. This research-in-progress studies reward-based crowdfunding through a behavioraleconomics lens. We draw on dual-process theory and provide preliminary evidence for the middle-option bias in crowdfunding. Two empirical studies in a simple, controlled environment confirm the sig...

An empirical investigation of signaling in reward-based crowdfunding

Start-ups often face the challenge of a shortage of capital, the so-called funding gap, which can be overcome by raising small amounts of money from a large number of individuals. As crowdfunding suffers from a continuous rise in failure rates, the aim of this article is to contribute to the research concerning success factors in reward-based crowdfunding campaigns by focusing on signaling theo...