Reward crowdfunding campaigns: Time-to-success analysis

Abstract

The time-to-success of reward crowdfunding campaigns constitutes a relevant topic that has been neglected in business literature. In this study, we employ parametric and semi-parametric models of survival analysis to identify the determining factors of the duration of success of these campaigns. Based on more than 4,200 reward crowdfunding campaigns, our results are robust for controls and reveal that the campaigns that attain success most rapidly are located predominantly in cities with greater income inequality. These are cities that are characterized by lower fundraising targets and receive a larger number of pledges. In addition, our covariates indicate a non-constant influence on time-to-success during the fundraising period.

Founder's Human Capital and the Entrepreneurial Process Duration

“…The non-parametric Kaplan-Meier survival estimator (Deng et al, 2022;Felipe et al, 2022;Carbonara, Tran and Santarelli, 2020) and the semi-parametric, Cox proportional hazard model, have been widely used to study venture survival likelihood in venture duration studies (Basco et al, 2020;Carbonara, Tran and Santarelli, 2020). I have used the Kaplan-Meier survival approach to show the survival patterns for all variables of interest (e.g.…”

Crowdfunding Curriculum Design Based on Outcome-Based Education

“…Previous studies have discussed how to be successful via crowdfunding from a number of different perspectives such as new product development ( Chan et al, 2021 ; Roma et al, 2021 ; Wu and Chen, 2021a ), crowdfunding project design ( Moradi and Badrinarayanan, 2021 ; Felipe et al, 2022 ), multimedia and social media ( Datta et al, 2019 ), and financial sustainability ( Gamble et al, 2017 ). This study organizes the above into modules, contents, and references ( Table 2 ).…”

Technology Project Summaries as a Predictor of Crowdfunding Success

“…Borst et al ( 2018) argued that, for example, the online nature of crowdfunding may amplify a "bystander effect", which suggests that potential funders may withhold funding because they assume that others will provide funding. While research to understand and predict crowdfunding success has accelerated in recent years (for example, Majumdar & Bose, 2018;Song et al, 2019;Felipe et al, 2022), it has often focused on highly specific industrial domains, such as green energy (Hörisch, 2015;Kubo et al, 2021), restaurants (Lelo de Larrea et al, 2019), medical solutions (Ba et al, 2021), video games (Song et al, 2019), or space exploration (Pomeroy et al, 2019). Alternatively, research has also addressed multiple domains and numerous variables at once (for example, Parhankangas & Rernko, 2017;Zhou et al, 2018;Song et al, 2019;Ryoba et al, 2021).…”

“…Crowdfunding can be applied to raise money for various purposes, based on the specific type of platform; for example, organizing an event, realizing an art project, accomplishing a social initiative, creating a product, or launching a start-up (Petitjean, 2018;Brem et al, 2019). Crowdfunding platforms offer several different models of crowdfunding: 1) donation-based crowdfunding, where funders do not receive any reward but donate for the pleasure that they get from supporting an initiative, 2) passive investment crowdfunding (also known as the "reward-based model") where funders receive a monetary or non-monetary reward for their support, ranging from honorary recognition to receiving the final product or service for free or at a discounted price, or even profit sharing, 3) the lending-based model, where investors provide small loans and can earn a contractually-agreed interest payment, and 4) active investment crowdfunding (also known as the "equitybased model"), where funders, similar to traditional investors, receive shares or similar rights in return for their financial contribution (Hörisch, 2015;Kraus et al, 2016;Yeh et al, 2019;Ralcheva & Roosenbloom, 2021;Felipe et al, 2022). According to several scholars (Cordova et al, 2015;Xie et al, 2019;Ralcheva & Roosenbloom, 2021;Cappa et al, 2021), reward-based platforms such as Kickstarter have been the most popular due to their widespread usage by entrepreneurs for raising funds for startup businesses or pre-selling products and services.…”

“…The benefits of crowdfunding include online platforms that allow for efficient matching of fund-seekers and funders, aggregating small donations into large pools of capital, lowering geographic barriers to fundraising, funding projects that may otherwise be outside of traditional funding methods, and democratizing research and exploration in underexplored fields (Pomeroy et al, 2019;Popescul et al, 2020;Felipe et al, 2022). Crowdfunding platforms provide fund-seekers and funders with means for investment transactions to take place that create value (that is, via legal groundwork, pre-selection screening, and processing financial transactions), as well as allowing for the testing of new products, estimating demands, and running new marketing campaigns (Cordova et al, 2015;Lukkarinen et al, 2016;Borst et al, 2018;Wehnert et al, 2019;Popescul et al, 2020).…”