The Determinants of Crowdfunding Success: Evidence from Technology Projects☆
By Alessandro Cordova, Johanna Dolci, Gianfranco Gianfrate. 2015
307 citations recorded by the source corpus.
Abstract Crowdfunding is a potentially disruptive way to finance new ventures. At the crossroad of micro-finance and social networking, crowdfunding is undergoing intense scrutiny from scholars and policymakers to understand where it positions in the chain of start-up funding. By studying 1127 technology projects posted on four distinct crowdfunding platforms, we highlight the factors explaining fundraising success over failure and the determinants of overfunding. We find that an increase in the project funding goal is correlated with a lower probability and extent of success, that project duration increases the chances of success, and that chances of success are positively related to the dollar amount contributed per day. The latter results supports the view according to which the crowdfunding patter follows the so-called “reinforcement model”, as opposed to the substitution one ( Shang and Croson, 2009 )
Subfields: Accounting, Economics and Econometrics, Management Information Systems
View Paper: https://www.semanticscholar.org/paper/1a853b1a1cec2b95950a41221e643610b23827fa
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Citations in the corpus
- It's never too late: Funding dynamics and self pledges in reward-based crowdfunding (2018, background): “…[Mollick, 2014], from several Italian crowdfunding sites [Giudici et al., 2013] and technology projects from four crowdfunding platforms [Cordova et al., 2015]: smaller, shorter projects have higher success rates; higher efforts on communication as proxied by web site quantifiers pay…”
- The role of venture capital in the emerging entrepreneurial finance ecosystem: future threats and opportunities (2019, background): “Other factors seemingly related to the positive performance of a crowdfunding campaign are the limited size and duration of the funding campaign (Li and Martin 2016) and the frequency of contributions by backers (Cordova, Dolci, and Gianfrate 2015)”