Download or read book Essays on Reward based Crowdfunding written by Stefan Manfred Rose and published by . This book was released on 2019 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Equity Crowdfunding written by Kazem Mochkabad Khoramchahi and published by Springer Nature. This book was released on 2020-09-18 with total page 193 pages. Available in PDF, EPUB and Kindle. Book excerpt: Because of the subprime mortgage crisis in 2008, the challenges of securing necessary external capital have become more significant for young ventures. In this realm, equity crowdfunding has evolved into the most promising financing alternative for entrepreneurs and received worldwide attention. By focusing on three subsequent research questions, this book aims to contribute to the ongoing scientific discussion of equity crowdfunding. First, it reveals fruitful future research avenues by providing a systematic overview of the development of equity crowdfunding research. Second, it sheds light on the so far less explored investor perspective and analyzes the decision-making process of equity crowdfunding investors. Third, based on a multi-method approach, the questions of how equity crowdfunding investors evaluate radically innovative ventures and how radically innovative ventures can establish venture legitimacy are explored.

Download or read book Reward based Crowdfunding Influence of Virtuous and Entrepreneurial Orientation Rhetoric on Campaign Performance written by Artem Milkov and published by GRIN Verlag. This book was released on 2021-05-19 with total page 91 pages. Available in PDF, EPUB and Kindle. Book excerpt: Master's Thesis from the year 2020 in the subject Business economics - General, grade: 1,0, Technical University of Munich, language: English, abstract: This paper extends academic literature on reward-based crowdfunding and examines the influence of entrepreneurial rhetoric on campaign performance through the lens of the social role theory. It explores how altruistic values shared by its participants redefine the social role of an entrepreneur. It demonstrates how this peculiarity can be exploited in favour of various disadvantaged demographic groups through an appropriate use of the language reflective of virtuous and entrepreneurial orientations. Despite their apparent importance, these two types of rhetoric have been largely neglected by scholars studying online funding platforms. Based on a quantitative analysis of 8,459 Kickstarter campaigns using a multilevel regression technique, the author discovered that virtuous orientation has a positive and entrepreneurial orientation negative effect on reward-based crowdfunding performance. Furthermore, in line with the social role theory, Caucasian women and racial minority men benefit greater than white males from the use of virtuous rhetoric and get punished more for using entrepreneurial rhetoric. However, these effects are reversed for racial minority females, who appear to be rewarded for violating the behaviour associated with their sex and race. Overall, the findings confirm that rhetoric is an important tool at entrepreneurs’ disposal, and they can improve their chances of success in reward-based crowdfunding by using it appropriately and in accordance with their social role. Crowdfunding is on course to become the leading source of capital for new venture financing, which is one of the most challenging tasks entrepreneurs have to face. Notwithstanding considerable progress, our understanding of its underlying processes remains inadequate.

Download or read book What about Realized Returns in Reward based Crowdfunding written by Alexander Fox and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Crowdfunding is an alternative form of financing, especially for entrepreneurs in the early-stage development phase. It is well-known that for investors, beyond altruistic motives, material returns play a crucial role, too. A previous study in this field analyzed returns offered by founders and demanded by investors, resp., by means of a data set from kickstarter.com, a leading platform for reward-based crowdfunding. The present paper additionally looks at the realized returns from an ex post view. It does not present new empirical findings, but identifies problems and limitations in this field, and presents some suggestions for future research.

Download or read book Reward based Crowdfunding written by Jue LIU and published by . This book was released on 2020 with total page 59 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper studies the role and value of information disclosure in a reward-based crowdfunding campaign for a new product development project under quality uncertainty. The creator sets a funding target that is subject to a minimum capital requirement and prices for a leading backer and a following backer arriving in two sequential periods. The backers form a prior belief about the quality of the product and update their valuation according to their private signals before they decide whether to bid for the products. The leading backer's bid, if disclosed, may be used by the subsequent backer to infer the former's private signal. We identify two interacting effects that drive the bidding decisions and the profitability of the campaign: an observational learning effect driven by information disclosure and a targeting effect. When the target is relatively high, information disclosure can always benefit the creator. When the target is relatively low, information disclosure may hurt the creator. The optimal target level is always equal to the minimum capital requirement. We further extend the analysis to a setting with a forward-looking leading backer who may strategically wait and identify the conditions under which information disclosure can also increase the profitability of the campaign. Interestingly, to counteract the strategic delay, the optimal target can be set higher than the minimum capital requirement in the presence of information disclosure.

Download or read book Reward and Donation Crowdfunding written by Rohit Gupta and published by Notion Press. This book was released on 2018-12-06 with total page 117 pages. Available in PDF, EPUB and Kindle. Book excerpt: The book is informative, apt details for both beginners and experienced Fundraisers. This book covers the basic idea of Reward Based Crowdfunding and Donation Based Crowdfunding. The main headlines of this book are:- • Reward-based crowdfunding: This type of Crowdfunding is also known as the non-equity way of funding your project. It has been widely used for funding campaigns like supporting a free development of software, promotion of motion pictures, aiding scientific research and development of inventions, etc. The people who are funding are hopeful of returns from the project. • Donation-based Crowdfunding: The best example for this would be raising funds from individuals to support personal or social causes. Applications Of Crowdfunding 1. Crowdfunding for personal & Individual Use 2. Crowdfunding for real estate 3. Crowdfunding for startups 4. Crowdfunding for businesses 5. Crowdfunding loans 6. Crowdfunding college debt

Download or read book Essays in Coordination Games written by Marcos Homero Cardozo and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The first chapter examines a reward-based crowdfunding mechanism as a way of improving the provision of a threshold public good. I present a model and test the theoretical implications in an online experiment focusing on equilibrium coordination. A fundraiser offers contracts to potential contributors, specifying for each contract a contribution level and the value of an individual reward. The public good is provisioned and the rewards are distributed only if the sum of individual contributions meets or exceeds the funding threshold, otherwise contributions are refunded and rewards are not distributed. The main empirical result is that an exogenous reward budget increases expected funds raised and the funding probability of the public good, compared to a treatment without a reward budget. The second chapter builds on global games by introducing an institutional change known as "holding tank" to improve coordination in games with incomplete information where agents would want to coordinate on an action that seeks to change the status quo. The holding tank is a centralized institution that checks whether the number of individuals coordinating on changing the status quo reaches a certain threshold. If the threshold is met then individuals' actions are released to the public, if not, their actions are kept secret, but the probability of retaliation is lower. Under some parameterizations the holding tank institution may increase or decrease coordination in relation to a setting without it. I propose an experiment to test these predictions. In the final chapter I present a model that studies the optimal composition of prizes in contests, to improve public good provision. This environment can capture different fundraising settings where the public good may be more important relative to the private rewards. The main result of this study is that if efforts costs are linear, as it often is assumed in public good fundraising, then to maximize contributions the fundraiser must allocate all the reward budget into a single prize. This result is not affected by the importance of the public good compared to the rewards. Finally, I present an experimental design to test the theoretical predictions.

Download or read book Essays on Behaviors of Online Crowds written by Ho Cheung Brian Lee and published by . This book was released on 2017 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation consists of three essays studying three different kinds of online communities – namely online crowds – that help firms to solve business problems. The first essay investigates prediction markets, online market exchanges for predicting events such as election results and new product sales. We ask whether prediction markets provide consistent and fallacy-free forecasts. We find that prices in the Presidential Election markets are occasionally prone to fallacies, and the prices from these markets cannot always be interpreted as accurate and noiseless representations of probabilities for predicted events. Our results suggest that the information gathered from prediction markets must be interpreted with caution. The second essay examines the contributing behavior of online backers on reward-based crowdfunding (RBC) platforms. RBC platforms allow the public to pledge money to a project and receive a reward. This paper focuses on backers who pledge more money than is required to claim a reward. We find that backers tend to contribute less when the project has already received a high amount of funding. However, backers tend to contribute more when the project is supported by a high number of backers. In addition, we show that herding may occur among the backers who only pledge money without claiming any rewards. These results help us understand more about contributing behaviors among online backers on RBC platforms. Crowdsourcing is a way to outsource a business task to an online community. The third essay investigates how the feedback information on a crowdsourcing platform and the systematic bias of crowdsourcing workers can affect outcomes. Specifically, we examine the role of a systematic bias – namely the salience bias – in influencing crowdsourcing platform performance. Our results suggest that the salience bias influences the performance of contestants, including the winners of the contests. Furthermore, we show that the number of crowdsourcing contestants moderates the impact of the salience bias due to the parallel path effect and competition effect. These results provide important implications for crowdsourcing firms and platform designers.

Download or read book Reward Versus Altruistic Motivations in Reward Based Crowdfunding written by Sunghan Ryu and published by . This book was released on 2019 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This research draws data from survey responses and actual transaction data to examine the effect of primary motivations on funding behavior in reward-based crowdfunding platforms. Findings show that altruistic motivations are associated with early funding, and larger funding in the early stages. In contrast, reward motivations are associated with late and larger funding across stages. Furthermore, women funders show stronger relationships between altruistic motivations and funding timing, especially in the early stages. This research advances understandings about reward-based crowdfunding, especially about individual funder behavior and theories of motivation. Practically, the findings suggest that project creators can increase funding success by promoting different types of motivations and targeting different demographic groups according to funding stages. Specifically, creators may highlight altruistic giving (rewards) in their campaigns at early (late) stages. They should also target women when promoting altruistic motivations at early stages.

Download or read book Handbook of Research on Crowdfunding written by Hans Landström and published by Edward Elgar Publishing. This book was released on 2019 with total page 416 pages. Available in PDF, EPUB and Kindle. Book excerpt: Crowdfunding is a hot topic and this Handbook provides a service to the research community by codifying, discussing and examining research in this area. It will be a starting point for researchers seeking high quality research in this new and important area.

Download or read book Reward Based Crowdfunding as a Marketing Tool for Established SMEs written by Michael Beier and published by . This book was released on 2019 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: In recent years, crowdfunding has come up as a new way of online fundraising for startups in early stages of their venture foundation. However, beside financial objectives of newly founded ventures, the reward-based variant of crowdfunding can also be applied as a powerful marketing tool for already established small and medium sized enterprises (SMEs). Nevertheless, so far, little is known about such crowdfunding applications by established SMEs. In this paper, we explore on basis of a multi case study in Switzerland, (1) how SMEs use reward-based crowdfunding campaigns in their marketing mix and (2) what challenges SMEs face when they apply reward-based crowdfunding for marketing purposes. Our findings indicate that reward-based crowdfunding offers established SMEs a comprehensive tool to develop and manage their marketing mix in an adaptive and relationship-oriented manner. However, crowdfunding is also a demanding marketing tool whose successful application in the marketing mix requires a certain level of strategic planning, contemporary marketing capabilities, and a well-coordinated execution of SMEs.

Download or read book Forecasting the Success Rate of Reward Based Crowdfunding Projects written by Ivelin Elenchev and published by . This book was released on 2017 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The present paper develops three models that help predict the success rate and attainable investment levels of online crowdfunding ventures. This is done by applying standard economic theory and machine learning techniques from computer science to the novel sector of on-line crowd-based micro- financing. In contrast with previous research in the area, this paper analyzes transaction-level data in addition to information about completed crowdfunding projects. This provides an unique perspective in the ways crowd finance ventures develop. The models reach an average of 83% accuracy in predicting the outcome of a crowdfunding campaign at any point throughout its duration. These ndings prove that a number of product and project specifi c parameters are indicative of the success of the venture. Subsequently, the paper provides guidance to capital seekers and investors on the basis of these criteria, and allows participants in the crowdfunding marketplace to make more rational decisions.

Download or read book Investigations of Reward based Crowdfunding Success written by Liang Zhao and published by . This book was released on 2018 with total page 174 pages. Available in PDF, EPUB and Kindle. Book excerpt: Entrepreneurial financing affects the survival and growth of new ventures. Because of the “liability of newness”, traditional financing channels may be hesitant to finance new ventures. Thus, new channels should be discovered and developed for new venture financing. Crowdfunding has recently emerged as an innovative and feasible channel for start-up financing in addition to traditional fundraising sources. Although research on crowdfunding has been popular in past decades, researchers’ understanding of the crucial success factors of crowdfunding remains limited. Therefore, taking reward-based crowdfunding as the research context, this thesis comprehensively explores the possible success determinants of crowdfunding campaigns through three different theoretical aspects: supporters’ utilitarian value, hedonic value and motivations The findings of this thesis shows that the pleasure obtained during the crowdfunding process is positively associated with crowdfunding success. Besides, entrepreneurs’ empathy and impression management are also significantly associated with reward-based crowdfunding results. In addition, this thesis also explores why the satisfaction of backer’s extrinsic motivation may not always lead to crowdfunding success. The findings of this thesis not only provide meaningful insights into the literature about crowdfunding in general, but also offer practical tips for both entrepreneurs and crowdfunding platform administrators.

Download or read book The Dark Side of Entrepreneurial Crowdfunding written by Steven Andrew Creek and published by . This book was released on 2018 with total page 116 pages. Available in PDF, EPUB and Kindle. Book excerpt: The second essay investigates the impact of funding from family members, friends, and self-backing on crowdfunding outcomes. I employ a mixed methods research design which includes a survey of crowdfunding project founders. My results highlight the importance of offline social capital and reveal that self-backing is a prevalent practice among crowdfunding campaign founders. External social capital and late-stage self-backing are found to be linked to both campaign success and total amounts raised while early-stage self-backing is not.

Download or read book Aiming for the Goal written by Joyee Deb and published by . This book was released on 2019 with total page 61 pages. Available in PDF, EPUB and Kindle. Book excerpt: We study reward-based crowdfunding campaigns, a new class of dynamic contribution games where consumption is exclusive. Two types of backers participate: buyers want to consume the product while donors just want the campaign to succeed. The key tension is one of coordination between buyers, instead of free-riding. Donors can alleviate this coordination risk. We analyze a dynamic model of crowdfunding and demonstrate that its predictions are consistent with high-frequency data collected from Kickstarter. We compare the Kickstarter mechanism to alternative platform designs and evaluate the value of dynamically arriving information. We extend the model to incorporate social learning about quality.

Download or read book Individual s Financial Investment Decision Making in Reward Based Crowdfunding written by Yasir Shahab and published by . This book was released on 2018 with total page 10 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper extends the work of Cecere et al. (Appl. Econ., 49(57): 5802-5813, 2017) and explores the antecedents of backers' decision to invest in projects from eight categories on a reward-based crowdfunding platform in China. We extract data from 2011 to 2016 from the pioneer Chinese reward-based crowdfunding site “Demohour”. Our empirical investigation using Ordinary Least Squares (OLS) reveals that feedback score, social capital (followers on Weibo, project sharing on social media) and project quality (number of updates) are key motivating factors in investment decision and subsequently, project success or failure. Robustness tests also confirm the findings.

Download or read book The Comprehensive Crowdfunding Guide written by Lance Joseph Mcneill and published by CreateSpace. This book was released on 2014-11-19 with total page 106 pages. Available in PDF, EPUB and Kindle. Book excerpt: This 100+ page Comprehensive Crowdfunding Guide is designed to walk you step-by-step through the planning and execution of a successful crowdfunding campaign. The Guide includes practical recommendations, tools and templates for every aspect of the crowdfunding campaign, from creating desirable perks and rewards, to crafting your crowdfunding video message, to effective social media strategies specific to perks and rewards-based crowdfunding. This Guide has it all! Disclaimer: You are ultimately responsible for the success or failure of your crowdfunding campaign, project and/or business and all decisions pertaining to the planning, execution and fulfillment of obligations related to your crowdfunding and business endeavors are solely your responsibility. This publication is based on compiled best practices, research and experience. The author makes no guarantee that your crowdfunding campaign, business or any other endeavor will be successful, but hopes that you will utilize this information to aid in your own success.