Maximising the Chances of Success in Reward Crowdfunding
Year: 2021 Volume: 71 Issue: 1 Pages: 80-94
Abstract: Crowdfunding enables the funding of business and non-profit ideas by raising small amounts from a large number of people. In this paper, we analyse a dataset of more than 3,600 completed projects from Slovakia and the Czech Republic to identify the most critical determinants of funding success. While confirming the positive effect of the target amount, video introduction, and negative impact of grammatical errors, we have observed the social network page's mixed effects. What is more, we have identified a new determinant, the questions asked, with a negative impact on the funding process. The results also suggest a brief and precise description with a video introduction can help achieve the goal. On the local crowdfunding platform, art and community projects are preferred, while the results suggest geographical effect. This paper may also be interpreted as guidance for project creation to maximise the chances of successful funding.
JEL classification: G23, L26
Keywords: reward crowdfunding, funding success, determinants
DOI: https://doi.org/10.32065/CJEF.2021.01.04
RePEc: https://ideas.repec.org/a/fau/fauart/v71y2021i1p80-94.html
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