IDEAS home Printed from https://ideas.repec.org/a/fau/fauart/v71y2021i1p80-94.html
   My bibliography  Save this article

Maximising the Chances of Success in Reward Crowdfunding

Author

Listed:
  • Tomas Stofa

    (Technical University of Kosice, Faculty of Economics, Department of Banking and Investment, Kosice, Slovakia)

  • Michal Soltes

    (Technical University of Kosice, Faculty of Economics, Department of Banking and Investment, Košice, Slovakia)

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.

Suggested Citation

  • Tomas Stofa & Michal Soltes, 2021. "Maximising the Chances of Success in Reward Crowdfunding," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 71(1), pages 80-94, June.
    • Handle: RePEc:fau:fauart:v:71:y:2021:i:1:p:80-94
    as

    Download full text from publisher

    File URL: https://journal.fsv.cuni.cz/mag/article/show/id/1481
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    reward crowdfunding; funding success; determinants;
    All these keywords.

    JEL classification:

    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fau:fauart:v:71:y:2021:i:1:p:80-94. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Natalie Svarcova (email available below). General contact details of provider: https://edirc.repec.org/data/icunicz.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.