The Determinants of Successful Crowdfunding Projects: An Empirical Study of a Taiwanese Crowdfunding Platform, flyingV
Date Issued
2015
Date
2015
Author(s)
Lin, Ting-yu
Abstract
This study provides an insight into the factors that influence the success of crowdfunding projects. The research sample includes 374 successfully funded projects from the major Taiwanese crowdfunding platform, flyingV, for the period since the launching of the platform in 2012 until December 2014. The quantitative analysis is conducted by using multiple linear regression method, with the project funding goal set as the control variable. The possible determinants include three aspects: (1) user participation, (2) reward, (3) project popularity. Based on the regression results, the residuals are further examined to ensure the random distribution of errors. The following are the main findings emerging from the result of the analysis: 1. The average user participation significantly and positively affects funding results. This indicates that regardless of the dollar amount pledged, the average contribution from a participating user to a project is consistent. Project founders can rely on this phenomena to assess the progress of on-going projects based on the amount of participating users. This assessment can also be used to calculate the amount user participation required to reach the funding goal, and can also support the utilization of marketing and advertising resources. 2. The amount of reward choices along with the median and the interquartile range of these choices’ dollar amount significantly influence a project’s funding result. This finding is consistent with previous researches on the Western crowdfunding platforms, and further indicates the median and the interquartile range of the reward choices’ dollar amount as an important factor to funding results. Based on this finding, project founders can establish reward choices to increase the dollar amount pledged. 3. The popularity of a project, including the amount of Q&A and the number of Facebook followers, influences the funding results in a significant and positive manner. The amount of Q&A indicates the users’ interest in a project, and also demonstrates the founder’s responsiveness to questions. The number of Facebook followers signals the popularity of a project on social media, and indicates whether the idea of a project echoes with the public or not. Based on this finding, project founders can evaluate the influence of project popularity on the funding result, and can further decide on the popularity required to increase pledged fund.
Subjects
crowdfunding
reward-based
multiple linear regression
Type
thesis
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