Main drivers of crowdfunding success
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Research project about crowdfunding. What influences people's donating behavior on crowdfunding platforms?
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Main drivers of crowdfunding success
- 1. CROWDFUNDING THESIS: Main drivers of crowdfunding success: a conceptual framework and empirical analysis BY: Mart Evers
- 3. GOAL: $3.000 RAISED: $44.596 # DONATIONS: 2.379
- 4. GOAL: $850.000 RAISED: $1.370.461 # DONATIONS: 33.253
- 5. GOAL: $100.000 RAISED: $10.266.846 # DONATIONS: 68.929
- 6. • Crowdfunding is comparable to charity • Donations regarded as gifts • No ownership or profit shares • Only thanking/present as token of gratitude • Data: • 8.800 IndieGoGo.com projects • 17 variables RESEARCH SET UP
- 7. Image Cause of need Picture appeal Perspective advocated Consequences Behavior Social (Raised amount) comparisons Decisional control Labeling Motive (Egoistic Request sizes Altruistic) CONCEPTUAL MODEL
- 8. MAIN DRIVERS OF CROWDFUNDING SUCCESS
- 9. • Good alternative for small projects and entrepreneurs • Success drivers are only the basis • Commitment, engagement and other marketing techniques required for huge success CROWDFUNDING?
- 10. THANK YOU
Editor's Notes
- WelcomePresentation outlineWhat is crowdfunding?Project examplesResearchConclusions
- Alternative way to acquire fundsFor small projects and start upsSoliciting for funds to an undefined group of people – the crowdOnline platforms
- Example projectsFixed elements for all projects:Funding goalRuntimePitchIf project is appealing, crowd can be levered and result is overfunding
- Project gestart door TheOatmeal.comOm huis van Nikola Tesla in museum om te bouwen -> anders geslooptDoel binnen 7 dagen bereiktDonaties uit >100 landenDoor grote achterban siteGoed voorbeeld van kracht van de crowd
- Other example from Kickstarter.comMost succesful project until nowCrowdfunding seems to be easyBig successes are exceptionsMany projects started every day
- Research:How do projects present themselves on platform (within borders of the platform)What are biggest influencers of donating behavior and project success?Perspective:- Donations on crowdfunding platforms comparable to donating to charity- No ownership, profit shares or voting rights acquired- Platform like charity is intermediaryTheoretical framework:Identifies drivers that influence donating behavior to charities after soliciting-> imago, pitch, donatiebedragAdapted to crowdfundingAnalyse:Indiegogo because wide variety of projects (creative, good cause, entrepreneurial)Technicially feasible, projects stay freely accesible > 4 yearsAble to record data of each projects for more than 15 variables8.800 projectsAdvantagesReal behavior vs intentionLarge sample size
- Conceptual modelIdentifies 8 success driversCategorized into 3: source, message, requestShould increase the inclination to donate and increase donated amountHelping defined: no, token, seriousHence more success
- Project pitch: convey the messageVideo: of more influence than picture or nothingText: 3 analysesNumber of wordsSentimentReadability: Flesch Kincaid Reading Ease, Gunning Fog score
- - Crowdfunding needs good preparation and execution with dedication.- Still only relatively low amounts are raised- Helps to engage with future clients, but misses other advantages of traditional fundingThere is no recipe for huge success:Optimizing success drivers is only the basisTo rise above averageOther factors important to get huge success:Innovativeness, likeability, marketing outside of platform e.g. viralityReseach shows people are indeed directly influenced by success driversThey focus on multitude of cues before deciding to donateTherefore cheating is very hard, rewards are too low to spoil reputationProjects need to be sincere and appealingHave a special twist to use the power of the crowd the most
- Thank:CoachCo-readerPieter AnemaetParents, family, friends