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SUCCESS DETERMINANTS OF CROWDFUNDING PROJECTS

Abstract

Estimation of social network’s willingness to help is a key factor in decision making, when setting up a crowdfunding (CF) campaign. This study seeks to identify the effect of past experience on social engagement attitude, such as commitment to participate in crowdfunding activities. We explore impact of differences in investor’s utilities from participating in crowdfunding, related to investor’s beliefs, behavioral patterns and background such as entrepreneurial experience and motivation to attempt (assumed or factual), attitude to gambling, career preferences and some other. In addition to self-reported survey data (N = 120), we analyze the magnitude of the most commonly used project performance metrics in campaign’s success: project’s goal, project’s subject, geographical location, duration of a campaign, number of backers and amount funded (N = 1000). Data is obtained from KickStarter.com server. Our findings suggest that participation grows from previous interactions with crowdfunding, other experience is insignificant.Common performance metrics have impact on campaign’s success, though our findings propose two of them insignificant, namely duration and location. Given previous findings state duration as important determinant of success and lack of data on estimating willingness to help, findings carry implications on estimating success determinants of CF projects.

About the Author

F. Levin
Deutsche Bank
Russian Federation


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Review

For citations:


Levin F. SUCCESS DETERMINANTS OF CROWDFUNDING PROJECTS. Review of Business and Economics Studies. 2015;3(4):79-87. (In Russ.)



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ISSN 2308-944X (Print)
ISSN 2311-0279 (Online)