The Determinants of Crowdfunding Success: Evidence from Technology Projects

Crowdfunding: Determinants of success and funding dynamics

Over the past years crowdfunding emerged as an alternative funding channel for entrepreneurs. In contrast to traditional financiers (banks, venture capital firms or angel investors), crowdfunding allows individuals to fund entrepreneurs directly even with small amounts. We received individuallevel data from Startnext, the biggest crowdfunding platform in Germany, enabling us to investigate fund...

Crowdfunding Success Factors: The Characteristics of Successfully Funded Projects on Crowdfunding Platforms

Crowdfunding platforms offer promising opportunities for project founders to publish their project ideas and to collect money in order to be able to realize them. Consequently, the question of what influences the successful funding of projects, i.e., reaching the target amount of money, is very important. Building upon media richness theory and the concept of reciprocity, we extend previous res...

Success in the management of crowdfunding projects in the creative industries

The Value of Completing Crowdfunding Projects

Crowdfunding systems are social media websites that allow people to donate small amounts of money that add up to fund valuable larger projects. These websites are structured around projects: finite campaigns with welldefined goals, end dates, and completion criteria. We use a dataset from an existing crowdfunding website — the school charity Donors Choose — to understand the value of completing...

Does Cumulative Advantage Increase Inequality in the Distribution of Success? Evidence from a Crowdfunding Experiment

The diffusion of online marketplaces has increased our access to “social information” – records of past behavior and opinions of consumers. One concern with this development is that social information may create cumulative advantage dynamics that distort marketplaces by increasing inequality in the distribution of success. Critically, this argument assumes that products that are likely to succe...