An empirical investigation of signaling in reward-based crowdfunding

Michael Marcin Kunz, Ulrich Bretschneider, Max Erler, Jan Marco Leimeister
2016 Electronic Commerce Research  
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 theory. Based on data retrieved from the crowdfunding platform Kickstarter, our results indicate that
more » ... l ties, investment preparation and presentation, the supply of multiple rewards as well as endeavors to communicate and interact with the crowd positively influence the probability of success of a reward-based crowdfunding campaign. In contrast, the funding goal, a campaign's runtime and the estimated time of delivery for the rewards have a negative impact on the successful completion of a campaign.
doi:10.1007/s10660-016-9249-0 fatcat:7y5alytr5bdopacivf3ucai5x4