IDEAS home Printed from https://ideas.repec.org/a/aiy/jnjaer/v19y2020i3p398-412.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: https://journalaer.ru//fileadmin/user_upload/site_15934/2020/07_Zambalaeva.pdf
    Download Restriction: no
    File URL: https://libkey.io/http://dx.doi.org/10.15826/vestnik.2020.19.3.019?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Andreas Hoegen & Dennis M. Steininger & Daniel Veit, 2018. "How do investors decide? An interdisciplinary review of decision-making in crowdfunding," Electronic Markets, Springer;IIM University of St. Gallen, vol. 28(3), pages 339-365, August.
    2. Laurell, Christofer & Sandström, Christian & Suseno, Yuliani, 2019. "Assessing the interplay between crowdfunding and sustainability in social media," Technological Forecasting and Social Change, Elsevier, vol. 141(C), pages 117-127.
    3. Alexander Chepurenko, 2017. "Innovation Entrepreneurship in Transition Economies: Problems and Outlook," Foresight and STI Governance (Foresight-Russia till No. 3/2015), National Research University Higher School of Economics, vol. 11(2), pages 6-9.
    4. Mikhail Maslennikov, 2017. "The Technological Innovations and Their Impact on the Economy," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(4), pages 1221-1235.
    5. Alexander Simons & Lena Franziska Kaiser & Jan Brocke, 2019. "Enterprise Crowdfunding: Foundations, Applications, and Research Findings," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 61(1), pages 113-121, February.
    6. Moonhee Cho & Laura L. Lemon & Abbey B. Levenshus & Courtney C. Childers, 2019. "Current students as university donors?: determinants in college students’ intentions to donate and share information about university crowdfunding efforts," International Review on Public and Nonprofit Marketing, Springer;International Association of Public and Non-Profit Marketing, vol. 16(1), pages 23-41, March.
    7. Cumming, Douglas J. & Johan, Sofia A. & Zhang, Yelin, 2019. "The role of due diligence in crowdfunding platforms," Journal of Banking & Finance, Elsevier, vol. 108(C).
    8. Arnis Sauka & Alexander Chepurenko (ed.), 2017. "Entrepreneurship in Transition Economies," Societies and Political Orders in Transition, Springer, number 978-3-319-57342-7, July.
    9. Kefan Xie & Zimei Liu & Long Chen & Weiyong Zhang & Sishi Liu & Sohail S. Chaudhry, 2019. "Success factors and complex dynamics of crowdfunding: An empirical research on Taobao platform in China," Electronic Markets, Springer;IIM University of St. Gallen, vol. 29(2), pages 187-199, June.
    10. Jascha-Alexander Koch & Michael Siering, 2019. "The recipe of successful crowdfunding campaigns," Electronic Markets, Springer;IIM University of St. Gallen, vol. 29(4), pages 661-679, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nurlan Kurmanov & Yerzhan Beisengaliyev & Marat Bayandin & Elmira Syzdykova & Madina Tolysbayeva, 2022. "Innovative Development of Kazakhstan s Raw Material (Oil and Gas) Regions: Multifactorial Model for Empirical Analysis," International Journal of Energy Economics and Policy, Econjournals, vol. 12(4), pages 131-140, July.
    2. Radoslaw Luft & Adam Weinert, 2021. "Analysis of the Crowdfunding European Market: Performance and Perspectives," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 632-644.
    3. Vera A. Barinova & Stepan P. Zemtsov & Alexander A. Mikhaylov & Yulia V. Tsareva, 2022. "Пересмотр Долгосрочных Трендов Развития Малого И Среднего Предпринимательства В России И Регионах В Постсоветский Период," Russian Economic Development (in Russian), Gaidar Institute for Economic Policy, issue 7, pages 29-44, July.
    4. Vera A. Barinova & Stepan P. Zemtsov & Alexander A. Mikhaylov & Yulia V. Tsareva, 2022. "Reconsidering Long-term Trends in the Development of Small and Medium-Sized Enterprises in Russia and the Regions in the post-Soviet Period [Пересмотр Долгосрочных Трендов Развития Малого И Среднег," Russian Economic Development, Gaidar Institute for Economic Policy, issue 7, pages 29-44, July.
    5. Janina Sundermeier & Tyge-F. Kummer, 2022. "Does personality still matter in e-commerce? How perceived hubris influences the assessment of founders’ trustworthiness using the example of reward-based crowdfunding," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(3), pages 1127-1144, September.
    6. Skare, Marinko & Gavurova, Beata & Polishchuk, Volodymyr, 2023. "A decision-making support model for financing start-up projects by venture capital funds on a crowdfunding platform," Journal of Business Research, Elsevier, vol. 158(C).
    7. Veronica Crescenzo & Angelo Bonfanti & Paola Castellani & Alfonso Vargas-Sánchez, 2022. "Effective entrepreneurial narrative design in reward crowdfunding campaigns for social ventures," International Entrepreneurship and Management Journal, Springer, vol. 18(2), pages 773-800, June.
    8. Bernardino, Susana & Freitas Santos, José & Oliveira, Sílvie, 2021. "The impact of social media and e-WOM on the success of reward-based crowdfunding campaigns," Cuadernos de Gestión, Universidad del País Vasco - Instituto de Economía Aplicada a la Empresa (IEAE).
    9. Johan, Sofia & Zhang, Yelin, 2020. "Quality revealing versus overstating in equity crowdfunding," Journal of Corporate Finance, Elsevier, vol. 65(C).
    10. Sardar Muhammad Usman & Farasat Ali Shah Bukhari & Huiwei You & Daniel Badulescu & Darie Gavrilut, 2020. "The Effect and Impact of Signals on Investing Decisions in Reward-Based Crowdfunding: A Comparative Study of China and the United Kingdom," JRFM, MDPI, vol. 13(12), pages 1-20, December.
    11. Noelia Salido-Andres & Marta Rey-Garcia & Luis Ignacio Alvarez-Gonzalez & Rodolfo Vazquez-Casielles, 2022. "When the winner takes it all: online campaign factors influencing the success of donation-based crowdfunding for charitable causes," International Review on Public and Nonprofit Marketing, Springer;International Association of Public and Non-Profit Marketing, vol. 19(4), pages 763-780, December.
    12. Feng Chen & Jian Ding & Mochou Li & Bingqing Wang, 2021. "From self‐entertainment to being appreciated: how does social media transfer talent to business?," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 61(5), pages 6113-6146, December.
    13. Filippo Corsini & Marco Frey, 2023. "Exploring the development of environmentally sustainable products through reward-based crowdfunding," Electronic Commerce Research, Springer, vol. 23(2), pages 1183-1207, June.
    14. Goethner, Maximilian & Hornuf, Lars & Regner, Tobias, 2021. "Protecting investors in equity crowdfunding: An empirical analysis of the small investor protection act," Technological Forecasting and Social Change, Elsevier, vol. 162(C).
    15. Troise, Ciro & Tani, Mario & Dinsmore, John & Schiuma, Giovanni, 2021. "Understanding the implications of equity crowdfunding on sustainability-oriented innovation and changes in agri-food systems: Insights into an open innovation approach," Technological Forecasting and Social Change, Elsevier, vol. 171(C).
    16. Xu, Lei & Li, Dahui & Chiu, Chun-Hung & Zhang, Qing & Gao, Runpeng, 2022. "Implications of warm-glow effect and risk aversion in reward-based crowdfunding," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 160(C).
    17. Chakhar, Salem & Ishizaka, Alessio & Thorpe, Andy & Cox, Joe & Nguyen, Thang & Ford, Liz, 2020. "Calculating the relative importance of condition attributes based on the characteristics of decision rules and attribute reducts: Application to crowdfunding," European Journal of Operational Research, Elsevier, vol. 286(2), pages 689-712.
    18. Vincenzo Butticè & Silvio Vismara, 2022. "Inclusive digital finance: the industry of equity crowdfunding," The Journal of Technology Transfer, Springer, vol. 47(4), pages 1224-1241, August.
    19. Anna Dukhon & Kirill Zinkovsky & Olga Obraztsova & Alexander Chepurenko, 2018. "How Entrepreneurship Education Programs Affect the Development of Small Businesses in Russia: Empirical Analysis in Regional Contexts," Voprosy obrazovaniya / Educational Studies Moscow, National Research University Higher School of Economics, issue 2, pages 139-172.
    20. Alexander Kalita & Alexander Chepurenko, 2020. "Competitiveness of Small and Medium Businesses and Competitive Pressure in the Manufacturing Industry," Foresight and STI Governance (Foresight-Russia till No. 3/2015), National Research University Higher School of Economics, vol. 14(2), pages 36-50.

    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

    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:aiy:jnjaer:v:19:y:2020:i:3:p:398-412. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Natalia Starodubets (email available below). General contact details of provider: https://edirc.repec.org/data/seurfru.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.