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Srikant Devaraj and Pankaj C Patel
''Influence of number of backers, goal amount, and project duration on meeting funding goals of crowdfunding projects''
( 2016, Vol. 36 No.2 )
Evaluating potential of crowdfunding projects is challenging, and this challenge has multiplied with increasing number of projects in recent years. Using a sample of 74,618 Kickstarter crowdfunding projects and based on linear growth time-trend mixed-effects logit model, with increasing number of crowdfunding projects over time, fewer projects received funding, furthermore, number of backers reduced, higher goal amount increased and shorter duration to meet the funding goal increased the likelihood of achieving the funding goal. The results suggest that over time crowdfunding platforms increase reliance on costlier signals (higher goal amount and shorter duration) and reduce reliance on noisier signals (number of backers).
Keywords: crowdfunding, linear growth model, number of backers, goal amount, duration
JEL: L2 - Firm Objectives, Organization, and Behavior: General
G2 - Financial Institutions and Services: General
Manuscript Received : Dec 31 2014 Manuscript Accepted : Jun 22 2016

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