Potential funders’ motivations in reward-based crowdfunding. The influence of project attachment and business viability

Will investors move their investment from bank deposits and stocks/bonds to equity crowdfunding?

This study aims to identify the effect of project-related and investor-related variables on Indonesian investors' intention to switch their investments from bank time deposits or company's stocks/bonds to equity crowdfunding. Project-related variables are business viability and financial return, while investor-related variables are trust, project attachment, liking, and investors' age. In recent years, research on the success factors of an equity crowdfunding campaign has increased. However, limited studies evaluate whether investors are willing to switch their investments from more known instruments such as bank time deposits and companies' stocks/bonds. Also, there is limited research set in developing countries such as Indonesia. This study used the primary data we collected using a self-filled closed questionnaire distributed online. After removing the unqualified data, we generated 114 data points to analyze. Data were processed using multiple linear regression. We found that the financial return variable positively and significantly affects investors' willingness to switch their investments from bank deposits and stocks/bonds to equity crowdfunding. We also found that the trust variable significantly affects investors' intentions to switch funds from bank deposits but there is not enough evidence that investors will switch funds from stocks/bonds to equity crowdfunding. Meanwhile, there is not enough evidence that other investor-related variables (project attachment, liking, and investor age) affect investors' intention to switch investments from banks' deposits or from stock/bonds to equity crowdfunding.

How to capitalize on investors by using information presentation and feedback on crowdfunding projects

As an innovative financing activity, online crowdfunding is characterized by extremely high information asymmetry. To reduce this information asymmetry, crowdfunding companies typically use information presentation, feedback, and other means to convey more information about the fundraising project to investors. Whether the information presentation and feedback affect the investment behavior of nonprofessional ordinary investors is yet to be determined. Moreover, the method by which the information presentation and feedback influence the investment behavior and consequently, the financing performance of crowdfunding companies, has to be identified as well. Currently, research on this subject remains deficient. Therefore, with signal theory and the difference in the cost of information transmission considered, this study classifies the information released by fundraisers on the crowdfunding platform into two categories: low-quality signal and high-quality signal. Projects on the JD.com Crowdfunding website are then used as research samples to explore how the difference in signal quality in the information presentation and feedback of crowdfunding projects influences financing performance from the perspective of investors. The results show that low-quality signals such as video duration, the number of updates, and the number of comments on projects positively affect the success of crowdfunding; meanwhile, crowdfunding experience, which represents high-quality signals, positively moderates the relationship between project video duration, project updates, and crowdfunding success.

Prioritising crowdfunding benefits: a fuzzy-AHP approach

The current research aims to explore and prioritize the key benefits that influence the acceptance of crowdfunding as a fund-raising tool, either directly or indirectly. The study utilized a multidisciplinary approach to find out the varied benefits of crowdfunding. The study also prioritized the benefits by applying the buckley fuzzy-AHP technique. The results indicate the various benefits of crowdfunding. The study's results suggest fund-raising (FR), venture viability (VV), cost structure (CS), customer relationships (CR), demand building (DB), general strategy (GS), market intelligence (MI), personal sphere (PS), business ecosystem (BE), team development (TD) and product lifecycle (PL) are the benefits associated with the crowdfunding process. The findings also suggest that the topmost benefit of crowdfunding is FR. But our study has not categorized the benefits according to different types of crowdfunding, and the study's findings cannot be generalized as the study was conducted in India. The study highlighted the critical financial and non-financial benefits of crowdfunding which can help the entrepreneurs to have more insightful knowledge of the potential benefits of crowdfunding. Studying the financial and non-financial benefits of crowdfunding can further help the entrepreneurs utilize crowdfunding platforms, depending on the need, to provide the right solution to their requirements. This research is the first study to apply the buckley fuzzy-AHP technique to prioritize the multidisciplinary benefits of crowdfunding, thereby widening the knowledge base of academicians and entrepreneurs.

Behavioral Influences on Crowdfunding SDG Initiatives: The Importance of Personality and Subjective Well-Being

Crowdfunding is emerging as a significant means by which to finance and advance the 17 United Nations Sustainable Development Goals (SDGs). Generating financial support for the SDGs is now of even more importance because of the economic impacts of COVID-19. However, little research on sustainability crowdfunding has been conducted, particularly with respect to how behavioral influences, such as personality and subjective well-being, affect the willingness of individuals to financially support the different SDGs. To fill this gap, a theoretically comprehensive research model including the big five personality traits typology, value on SDGs, attachment to sustainability crowdfunding, subjective well-being, and three groups of SDGs was constructed and tested. Results reveal that agreeableness has the highest effect on value on SDGs among five personalities, followed by openness and conscientiousness. Unexpectedly, extraversion has a negative impact on value on SDGs and neuroticism has an insignificant effect on value on SDGs. Value on SDGs has a great effect on attachment, followed by subjective well-being. Attachment has the greatest effect on subjective well-being within this research model. Comparing fair distribution, efficient allocation, and sustainable scale groups of SDGs shows substantial differences with respect to the hypotheses.

Application of the 4Es in Online Crowdfunding Platforms: A Comparative Perspective of Germany and China

As a dynamic way to raise funds for professional and private projects in recent years, crowdfunding has made tremendous progress, especially through online platforms. However, research on this subject is still young, leaving room for different perspectives. We therefore approach the marketing mix adaptability of online crowdfunding platforms and its impact on campaign efficiency and company strategy in two major economies: Germany and China. With the help of case examples based on secondary data, we performed an in-depth analysis of the 4E marketing mix benefits on crowdfunding, highlighting best practice approaches. We critically discuss the 4Es marketing mix approach, focusing on experience, value exchange, and marketing scales, and clarify the compatibility between crowdfunding and 4Es to better understand how these theories are applied to crowdfunding activities. As a result, the suitability of the 4E marketing mix adapted to crowdfunding needs is shown. From a market-oriented perspective, managers of crowdfunding platforms, as well as project owners from Germany and China, will be better able to attract their target audience by applying the 4E adaptation provided.

A qualitative study on money, well-being and serial crowdfunding

Purpose

The paper aims to examine the unique nature of crowdfunding and its association with supporters' well-being, measured by Seligman's (2011) well-being theory and its five elements of PERMA: positive emotions, engagement, relationships, meaning and accomplishment.

Design/methodology/approach

22 structured interviews were conducted with supporters of crowdfunding projects. The interviews were analyzed using deduction, generating themes and assigning them to the relevant PERMA elements.

Findings

Almost all interviews included five or four PERMA elements, supporting the hypothesis about crowdfunding as a form of economic behavior that is triggered by the desire for fulfillment in life. The authors found that the tendency to become a serial crowdfunder is triggered by PERMA and a sense of trust.

Originality/value

This is the first study that presents a well-being theory of non-investment crowdfunding contributions. Based on the interviews, we suggest a theory linking the motivation for backing current and future projects with PERMA elements, sense of trust and the nature of adaption to activities with intrinsic attributes.

Backers investment behavior on explicit and implicit factors in reward-based crowdfunding based on ELM theory

The aim of this study is to identify the dynamic explicit and implicit information factors which displayed on the webpage of platforms that influence backers’ investment decision-making behavior. We analyze the connections among these factors by collecting the longitudinal dataset from reward-based crowdfunding platform. Based on ELM model, we establish Fixed Estimation Panel Data Model respectively according to explicit and implicit factors and take Funding Status (crowdfunding results) as the moderating variable to observe the goal gradient effect. Results indicate that most variables in the central route affect backers' investment behavior positively, while most variables in the periphery route have a negative impact on backers' investment behavior. The Funding Status has a significant negative moderating effect on the explicit variables, and has no significant moderating effect on the implicit information variables of the project. In addition, we upgrade the econometric method used by previous scholars, which could improve the accuracy of the FE model. Furthermore, we find strong support for the herding effect in reward-based crowdfunding and the intensity tends to decrease before the funding goal draws near.