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Project description and crowdfunding success: an exploratory study.

Mi Jamie Zhou1, Baozhou Lu2, Weiguo Patrick Fan1

  • 11Pamplin College of Business, Virginia Polytechnic Institute and State University, Blacksburg, VA 24061 USA.

Information Systems Frontiers : a Journal of Research and Innovation
|May 15, 2018
PubMed
Summary

Project description content and owner experience significantly impact crowdfunding success. Analyzing factors like length, readability, tone, and past expertise improves funding predictions.

Keywords:
Content analysisCrowdfundingEmpirical studyPersuasionPredictive model

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Area of Science:

  • Social Sciences
  • Business and Economics
  • Communication Studies

Background:

  • Existing research on funding success primarily examines basic project attributes.
  • Crowdfunding success is increasingly viewed through the lens of persuasion and project description content.

Purpose of the Study:

  • To identify and investigate key antecedents of funding success within project descriptions.
  • To assess the impact of content-based (length, readability, tone) and credibility-based (past experience, expertise) factors on crowdfunding outcomes.

Main Methods:

  • Utilized data from Kickstarter, a prominent crowdfunding platform.
  • Applied the unimodel theory of persuasion to analyze project descriptions.
  • Developed and evaluated a predictive model incorporating identified antecedents.

Main Results:

  • Identified project description length, readability, tone, owner past experience, and expertise as significant predictors of funding success.
  • The proposed model achieved 73% accuracy and 70% F-measure, outperforming baseline and mainstream models.
  • Demonstrated that older project data loses predictive relevance over time.

Conclusions:

  • Antecedents derived from project descriptions offer incremental predictive power for funding success.
  • Project owners can leverage these findings to enhance their crowdfunding campaign strategies.
  • The study highlights the importance of persuasive communication and credibility cues in crowdfunding.