Factors Affecting The Reward-based Crowdfunding

In recent years,reward-based crowdfunding is becoming an effective way of fundraising for SMEs,teams and individuals to realize their innovative ideas.Unlike equity-based crowdfunding and lending crowdfunding(P2P)that provide monetary returns,supporters of reward-based crowdfunding generally have less capital contributions,and they are not only funders but also the earliest consumers of crowdfunding products or services.Therefore,reward-based crowdfunding is increasingly attracting the attention of innovative entrepreneurs as a complementary form of traditional venture capital,equity crowdfunding and lending crowdfunding.This paper discusses on the emerging financing method of reward-based crowdfunding indepth,does the research on the real-time big data based on online reward-based crowdfunding projects to explore the dynamics of the crowdfunding process,and the impact of social media and social capital on reward-based crowdfunding.This will not only help to clarify the the internal mechanism and impact path betthis paperen realtime social information and reward-based crowdfunding from a micro level,but also to evaluate the economic effects of China's Reward-based crowdfunding,but also for further deepening.It has important theoretical and practical significance to provide a new basis for the development of China's crowdfunding industry and the innovation of financing systems.This paper is based on the collection of big data.On the one hand,from the perspectives of product innovation,social capital and social media,this paper deeply explores the mechanism and influence path of product innovation,social capital and social media information in the process of reward-based crowdfunding.On the other hand,this paper uses the theory of responsibility diffusion model and target gradient effect in social psychology,to explore the impact of this information on supporters in crowdfunding investment decisions,so as to in-depth study of the characteristics of internet information in decreasing information asymmetry.Specifically,this article focuses on the following three issues.First,this paper studied and discussed the influence of product innovation and social capital on the final fundraising results of reward-based crowdfunding from the two dimensions of crowdfunding product innovation and social capital of the crowdfunding sponsor.By combining ratings information from the third-party and existing large databases of internet e-commerce markets,this paper have built an index measurement system to measure product innovation and social capital.The results found that product innovation has a significant impact on the final result of rewardbased crowdfunding from four perspectives: innovation,popularity,scarcity,and competitiveness.And different types of reward-based crowdfunding project have different preferences for product innovation elements.The larger the scale of the crowdfunding promoter,the more important to investors on innovation and popularity,while the scarcity and competitiveness of the reward-based crowdfunding projects are important factors for smaller promoters.Unlike traditional research,most elements of social capital have no effect on the final fundraising results of reward-based crowdfunding.And the conclusions show that the historical social capital accumulated by crowdfunding promoter cannot significantly affect the final fundraising results of current reward-based crowdfunding,and the quality and innovation level of the product itself is the key to determining the final fundraising result.Secondly,from both static and dynamic perspectives,this paper studies and tests the influence of social media,including the reward-based crowdfunding platform itself and the third-party social media Weibo and We Chat,on the level of crowdfunding and the path of action using the example of JD crowdfunding plateform.This paper found that social media dissemination and promotion can have a significant positive impact on the level of crowdfunding.Among them,reward-based crowdfunding platforms play the most important role,followed by Weibo,We Chat is the smallest,and the homepage recommendation of the platform is the most important social factor that determines the level of crowdfunding.This positive influence of social media is achieved by influencing the number of followers and topic discussions of crowdfunding projects on the JD crowdfunding platform,that is,the number of followers and topic discussions of crowdfunding projects play a significant role in mediation.This paper further finds that the dissemination and promotion of reward-based crowdfunding platforms have a significant positive effect on the level of crowdfunding at any stage during the crowdfunding period,but third-party social media such as Weibo and We Chat only exerts a significant positive influence in the intermediate stage.The conclusions have theoretical and practical significance for how to improve the level of crowdfunding.Finally,this paper uses the collection software of internet real time data to collect the information of three reward-based crowdfunding platforms in China from October 2015 to February 2016,and this paper finds out the dynamics of reward-based crowdfunding based on the real time social information.This paper constructs the theoretical expectations based on the diffusion of responsibility effect and the goal gradient effect.And the results show that regression coefficient of the amount of support added every day and the cumulative support is significantly positive at the beginning of the product,showing a significant downward.While the regression coefficient of the two is returned to significant positive and rising trend with the cut-off date,but this upward trend is not very obvious.Additionally,there is a significant acceleration process with the support that is becoming increasingly close to the financing objectives.The dynamics of crowdfunding means that the key to the success is the real time information in the beginning and end stage and the financing for more than half of the crowdfunding target as soon as possible.In summary,the research of this paper shows that when traditional financing channels face difficulties in raising funds,reward-based crowdfunding is an alternative and supplement to traditional financing channels,but the information asymmetry issues will affect the decision-making of potential investors.The decisions of others,that is,real-time social information,the characteristics of social media and product innovation play an important role in the success or failure of reward-based crowdfunding.The research conclusions have theoretical and practical significance for how to improve the level of crowdfunding.