An Empirical Study Of The Influential Factors On Reward-Based Crowdfunding Achievement Rate

Crowdfunding is a novel method for funding a variety of new ventures, allowing individual founders of for-profit, cultural, or social projects to request funding from many individuals. Even the same type crowdfunding projects can range greatly in achievement rate, from small rate to tens of thousands achievement rate. What factors affect the return-based crowdfunding achievement rate? This paper offers a description of crowdfunding and the existing research on the topic. Drawing on a dataset of 300 projects from Jingdong Crowdfunding website, this paper also discusses the influential factors on reward-based crowdfunding achievement rate from founders'perspective. It suggests that investors'average investment amount, degree of visitors'involvement and interaction has significant positive influence on achievement rate, and the crowdfunding goal set by founders has significant negative effects on achievement rate. These results offer insight into the emerging phenomenon of crowdfunding, and also shed light more generally on the ways that the actions of founders may affect their ability to receive entrepreneurial financing.