Raising money on crowdfunding platforms: the components of success
Urszula Mrzygłód , Marcin Skurczyński , Joanna Adamska-Mieruszewska
AbstractCrowdfunding differs significantly from standard business and personal financing since it allows those in need of funds to collect small contributions from the community of internet users. This unique feature makes crowdfinancing popular throughout the world and supports growth in terms of the number of financed projects and the volume of financing. Nonetheless, the percentage of projects fully financed on crowdfunding platforms is relatively low. This raises a question about the origins of successful financing. Based on a unique dataset of 1,543 projects, we investigated the attributes of projects on one of the largest crowdfunding platforms operating in Poland: PolakPotrafi.pl. This paper aims to determine the key drivers of successful crowdfinancing. Along with standard statistical measures, we conducted logistic regressions. We found that the longer a project’s duration and the higher funding goal per supporter are, the less likely the project is to be fully funded. In contrast, active communication by the project’s founder increases the chances of successful crowdfinancing. We also found that crowdfinancing is not geographically neutral: conducting a project in Poland’s capital is correlated with a higher probability of obtaining funds.
|Publication size in sheets||1|
|Book||Überwimmer Margarethe, Füreder Robert, Gaisch Martina (eds.): Cross-cultural business conference 2018, May 17th-18th: proceedings, 2018, Shaker Verlag, ISBN 978-3-8440-5875-8, 395 p.|
|Keywords in English||crowdfunding, success & failures determinants|
|Score||= 5.0, 07-11-2018, BookChapterNotSeriesMainLanguages|
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