equity crowdfunding

crowdsourcing platforms

Journal of Business Research

Successful crowdfunding campaigns are multifaceted in nature and depend on marketing and organizational features. This study identifies the most appealing factors and analyzes the results through a multi-theory approach as follows. First, contrary to altruism and warm-glow giving theories, crowdfunding to support social impact projects does not perform well. Second, fixed campaigns, small-sized projects, and prolonged campaigns are more likely to be funded, in line with goal-setting theory. Additionally, the resource-based view of firms clarifies the importance of having large entrepreneurial teams. Further, narrative theories about persuasion and information processing provide insights into why detailed text descriptions are more persuasive than pitch videos. Finally, this study relies on social identity and signaling theories to illustrate the impressive role of social networks and discussion forums between fundraisers and backers for developing effective word-of-mouth. This paper also provides fundraisers with recommendations to building appealing campaigns.

Exploring the multi-sided nature of crowdfunding campaign success