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Being cognizant of the amount of information: Curvilinear relationship between total-information and funding-success of crowdfunding campaigns

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  • Thapa, Nischal

Abstract

Fund-seekers launching crowdfunding campaigns must provide information about their product or service to attract potential fund-providers. They usually provide information about their product using text, videos, and images. However, the amount of information that maximizes the likelihood of funding success is unknown. This study amalgamates the communications and crowdfunding literature and argues that the total-information has a curvilinear relationship with the likelihood of funding success. This study collects data from more than two thousand rewards-based crowdfunding campaigns, conducts multiple logit regression analyses, and demonstrates that total-information initially positively and later negatively affects the likelihood of crowdfunding success. Furthermore, this study indicates that fund-seekers should focus on providing information through text and videos rather than images.

Suggested Citation

  • Thapa, Nischal, 2020. "Being cognizant of the amount of information: Curvilinear relationship between total-information and funding-success of crowdfunding campaigns," Journal of Business Venturing Insights, Elsevier, vol. 14(C).
    • Handle: RePEc:eee:jobuve:v:14:y:2020:i:c:s2352673420300512
    DOI: 10.1016/j.jbvi.2020.e00195
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    Cited by:

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    3. Lin, Tse-Chun & Pursiainen, Vesa, 2022. "Regional social capital and moral hazard in crowdfunding," Journal of Business Venturing, Elsevier, vol. 37(4).
    4. Chan, C.S. Richard & Pethe, Charuta & Skiena, Steven, 2021. "Natural language processing versus rule-based text analysis: Comparing BERT score and readability indices to predict crowdfunding outcomes," Journal of Business Venturing Insights, Elsevier, vol. 16(C).
    5. Gallucci, Carmen & Giakoumelou, Anastasia & Santulli, Rosalia & Tipaldi, Riccardo, 2023. "How financial literacy moderates the relationship between qualitative business information and the success of an equity crowdfunding campaign: Evidence from Mediterranean and Gulf Cooperation Council ," Technology in Society, Elsevier, vol. 75(C).
    6. Daniela Hadacová & Lenka Malická, 2022. "Reward-Based Crowdfunding. How to Make it Work?," Theory Methodology Practice (TMP), Faculty of Economics, University of Miskolc, vol. 18(01), pages 45-59.

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