Factors Affecting The Success Of Crowdfunding

Inner core power for the development of a country,innovation is vital for the development of the national economy.However,Most startups due to their small size and low level of credit,often fall into the dilemma of financing difficulties,which greatly restricts their development.Crowd-funding as a new financing channel,on the one hand,to a certain extent,ease the start-ups financing difficult problem,on the other hand also provides a product improvement channels and marketing channels,as a result increasing the vitality of start-ups.The pattern of crowd-funding mainly divided into four kinds,donate-based crowd-funding,equity-based crowd-funding,lending-based crowd-funding and reward-based crowd-funding,in addition to reward-based crowd-funding,developmeet of other three kinds of the crowd-funding in domestic is not mature,relevant laws and regtlations also lack certain perfection,so this article aims to reward-based crowd-funding as the research object,to analyze which factors have an impact on the success of reward-based crowd-funding.,then make guidance for start-ups,increase the likelihood of its successful financing.Both traditional financing ways and financing through the Internet,there are asymmetric information between the investor and financiers,so the signal transfer between both sides is very important.This article selects the domestic representative jingdong the raised platform as the research object,first of all,based on the theory of signal,fron the project quality signals sent,the sender's social capital and the signal receiver feedback these three aspects to analyze which specific factors influence the success of reward-based crowd-funding.Secondly,in the case that the assignment failure project is 0 and the successful project is 1,the method of logistic regression is selected to verify the influence of each factor on the success of crowd-funding.Finally,through empirical analysis,it is concluded that the larger target financing amount and the more frequent updates of the project,the less likely the project financing will be.The more variety of returns,the project period the more the project sponsors used to support others,the more people supported in the current project,the more frequent interaction between the project sponsors and investors in the current project,the greater the number of people with the largest amount of investment,the greater the ratio(the largest number of investment/project total investment),the greater the success of financing.So start-up as an issuer,want to obtain the necessary cash needed to launch,should not be too large financing amount and project updates to pay attention to the disclosure of key information,which can greatly reduce the risk of investors perception,and thus the success of the financing will greatly improve.For the return type of project can classify the multilevel,based on mass to divide the level of return.At the same time,issuers should be involved in a lot of reward-based activities,in order to increase their social circle,through friends of friends,relatives of relatives,this approach to obtain the initial rapid financing;For the return type of project can classify the multi-level,only depend on the quantity to differentiate return level is difficult to attract investors,to mass to divide the return level can increase the success of financing;Project cycle should not be set too short,too short project cycle cannot make investors feel inner innovative and creative product,and long project cycles than investor's risk tolerance range,so to set the proper cycle to increase the success of the financing;In addition,during financing issuers should enhance the interaction between investors.on the one hand,not only increase the investor's cohesion,establish the confidence of investors for products,on the other hand also can absorb the views of the investors,improvement of products,make the products more in line with market demand,thus attract the attention of more and more investors,making financing success greatly ascend.