Research On The Influence Of The Project Quality And The Fundraiser’s Social Capital On Crowdfunding Result

Crowdfunding initially appeared in 2006, and now has evolved into an important way for emerging enterprises and individuals to raise funds for their projects. In 2015, crowdfunding raised more than 11 billion Yuan in C hina. The role of crowdfunding becomes more and more prominent. Considering the characteristics and development of crowdfunding in C hina, this paper includes two parts. First, I use game theory to analyze the influence of the project quality and the fundraiser’s social capital on crowdfunding result under the premise assumption. Second, an empirical study is conducted to find the influence of the project quality and the fundraiser’s social capital on crowdfunding. After building the model of the crowdfunding result, I use logistic regression method to get the result. Also I compare the differences of the factors between crowdfunding projects with different goals.In this paper, After making assumptions in crowdfunding and the following process in order to use the subgame perfect Nash equilibrium, I use the inverse regression method to derive the calculation formula of the financing result of crowdfunding, then describes the influence of the project quality and the fundraiser’s social capital on crowdfunding. The result shows that they both have a positive effect on the financial result. In empirical study, I use 1355 samples from Jingdong website which finish between August, 2015 and March, 2016. The result show that the crowdfunding experiences is negative with the financing result of crowdfunding, and the project’s updates and creativity are positive. The three dimensions of the social capital are positive. After comparing the differences of the factors between crowdfunding projects with different financing goal, I find that, the structure dimension of social capital has a significant influence on the financing result of crowdfunding in the small- goal project, and the updates hasn’t. The conclusion is contrary to the conclusion in the large- goal project.Base on the research results, this paper puts forward some corresponding views for crowdfunding platform and the public to raise project by crowdfunding.