Antecedents Of Success Rate—And Innovation Externality Of Award-Based Crowdfunding

In recent years, the development of internet financial innovation including the crowdfunding, has shaken the dominance of the traditional long-term financing model, launching a "financial disintermediation" wave, and also has greatly promoted the long-tailed innovation, broadening the small entrepreneurial innovation financing of the project, so that the public has the opportunity to participate in the real economic production to promote economic restructuring, to create a good atmosphere for innovation. The development of crowdfunding quickly becomes a hot topic in academic research at home and abroad, the research in the field of traditional financial makes new breakthrough in the Internet age.This paper made theoretical research, empirical analysis, case extend quantitative analysis based on the project practice of local Chinese team on the international public crowdfunding platform——Kickstarter, and made some explored research on antecedents of success rate and innovation externality of award-based crowdfunding. The research findings are as follow:(1) Based on the previous studies, this paper applied the theoretical elaboration likelihood model to in-depth analysis of the psychological path of the investors when they made a final investment decision after browsing and screening relative information of award-based crowdfunding projects.Then this paper studied the influence of various factors on the success rate of the crowdfunding projects. Logistic method was chosen for empirical verification based on selected detailed data on 300 Chinese items on Kickstarter platform.(2) The paper then studied the Chinese mainland Nonda team and their project "Hub +" on Kickstarter platform, to illustrate the empirical analysis.(3) This paper took the perspective of whether the sponsor will make the choice of crowdfunding and tried to seek possible solution to "Prisoner’s Dilemma" with the method of revenue and cost function based on game model.The findings are as follows:(1) The central clue: the ambiguous degree of the description, the key word of risk, the update, and the peripheral clue: initiator’s social capital, the duration of the project were positively related to the success rate of crowdfunding. It was proved that investors would make rational investment decisions when facing high uncertainty characteristics of the target projects.(2)The factors contributed to financing success rate of Chinese crowdfunding team indicated good quality of projects, the international team advantage, the good skills of communication as well as planned marketing ideas.(3)Be adhere to the original idea, higher internal execution, taking full use of the platform mechanism design to improve success rate of project and relatively perfect patent protection consciousness could help the crowdfunding team get rid of "Prisoner’s Dilemma."...