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Research of Factors of Successful Crowfunding Finance on the Example of the Russian Boomstarter Platform

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  • T.B. Zambalaeva

Abstract

The paper focuses on the factors of a successful crowdfunding financing case – the Russian platform Boomstarter. The aim of the study is to design a model to determine the characteristics of projects which contribute to the collection of funds in crowdfunding. Crowdfunding technology is a process of financing a variety of projects that allows the initiator to request financial support from a large number of people in return for a reward. Thanks to the technology, entrepreneurs can launch campaigns not only on local but also international platforms. As a result, a community is formed around digital platforms that provides an access to a large number of partners and users. The hypothesis of the study is that social and information factors contribute to the achievement of the financial goal of a crowdfunding campaign. This study was conducted on the Boomstarter platform in the technology, hardware and software categories. The empirical database consists of 100 projects hosted by the platform between 2013 and 2019. For each of the projects different characteristics were collected of the financial and economic nature (financial target number of lots with the awards, the number of sponsors, amount of funds) to the characteristics describing the design clearance. Among them is the presence of video and images, the presence of links to social networks. The main method of analysis is econometric analysis in the RStudio program. The results point to four factors that contribute to active fundraising. Namely, the declared amount, social and economic factors, such as the number of news releases published by the founder of the project, the presence of comments left by sponsors, and the number of reposts on social networks VKontakte and Facebook. It is important to note that the characteristics obtained are the only collected factors that can only be obtained at the end of the fundraising process. In addition, the results of the study have every chance of providing recommendations to authors of projects at the stage of their crowdfunding campaign. Thus, crowdfunding technology is a promising and important tool for financing projects.

Suggested Citation

  • T.B. Zambalaeva, 2020. "Research of Factors of Successful Crowfunding Finance on the Example of the Russian Boomstarter Platform," Journal of Applied Economic Research, Graduate School of Economics and Management, Ural Federal University, vol. 19(3), pages 398-412.
    • Handle: RePEc:aiy:jnjaer:v:19:y:2020:i:3:p:398-412
    DOI: http://dx.doi.org/10.15826/vestnik.2020.19.3.019
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    More about this item

    Keywords

    digital platforms; digital economy; crowdfunding; crowdfunding platforms; financing; innovation projects; innovations; Boomstarter; RStudio;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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