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Successful Crowdfunding Campaigns: The Role of Project Specifics, Competition and Founders’ Experience

Author

Listed:
  • Jan Janku

    () (Technical University of Ostrava, Faculty of Economics, Czech Republic)

  • Zuzana Kucerova

    () (Mendel University in Brno, Faculty of Business and Economics
    Technical University of Ostrava, Faculty of Economics, Czech Republic)

Abstract

We focus on reward-based crowdfunding and identify the basic determinants of successful crowdfunding campaigns including new determinants not analyzed in previous studies. Using a rich database of Kickstarter projects launched during the period from April 2009 to April 2017, we employ an empirical logit model to test the causalities and statistical significance of the selected factors. Our new empirical findings suggest that launching a project campaign during the weekend and during the month with the stronger competition in the form of other launched projects decreases the success rate of the campaign. On the other hand, a longer preparation period on Kickstarter and a higher projects’ density in the given state can increase the chances to succeed. We also conclude that the competition plays the most prominent role in the category of the smallest projects. Conversely, a negative effect of projects launched at weekends and a positive effect of a founder‘s experience is the strongest in the group of the largest projects.

Suggested Citation

  • Jan Janku & Zuzana Kucerova, 2018. "Successful Crowdfunding Campaigns: The Role of Project Specifics, Competition and Founders’ Experience," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 68(4), pages 351-373, September.
  • Handle: RePEc:fau:fauart:v:68:y:2018:i:4:p:351-373
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    File URL: http://journal.fsv.cuni.cz/storage/1414_351-373_kucerova_final_issue_4_2018.pdf
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    References listed on IDEAS

    as
    1. Paolo Crosetto & Tobias Regner, 2014. "Crowdfunding: Determinants of success and funding dynamics," Jena Economic Research Papers 2014-035, Friedrich-Schiller-University Jena.
    2. Svatopluk Kapounek, 2017. "The Impact of Institutional Quality on Bank Lending Activity: Evidence from Bayesian Model Averaging," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 67(5), pages 372-395, October.
    3. Richard Harrison, 2013. "Crowdfunding and the revitalisation of the early stage risk capital market: catalyst or chimera?," Venture Capital, Taylor & Francis Journals, vol. 15(4), pages 283-287, October.
    4. Cumming, Douglas (ed.), 2012. "The Oxford Handbook of Entrepreneurial Finance," OUP Catalogue, Oxford University Press, number 9780195391244.
    5. Scott Shane & Daniel Cable, 2002. "Network Ties, Reputation, and the Financing of New Ventures," Management Science, INFORMS, vol. 48(3), pages 364-381, March.
    6. Mollick, Ethan, 2014. "The dynamics of crowdfunding: An exploratory study," Journal of Business Venturing, Elsevier, vol. 29(1), pages 1-16.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    crowdfunding; entrepreneurship; startups; information; innovation;

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • C55 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Large Data Sets: Modeling and Analysis

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