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Key Factors for Project Crowdfunding Success: An Empirical Study

Author

Listed:
  • Aladino Fernandez-Blanco

    (Project Engineering Department, University of Oviedo, 33004 Oviedo, Spain)

  • Joaquin Villanueva-Balsera

    (Project Engineering Department, University of Oviedo, 33004 Oviedo, Spain)

  • Vicente Rodriguez-Montequin

    (Project Engineering Department, University of Oviedo, 33004 Oviedo, Spain)

  • Henar Moran-Palacios

    (Project Engineering Department, University of Oviedo, 33004 Oviedo, Spain)

Abstract

Crowdfunding is a response to the financing problem of innovative projects in an environment of severe economic crisis. Its competitive advantage lies in its independence from banking institutions and the distribution of risk among a certain number of funders. Since its inception, the number of successfully completed projects has grown to a point where it has started to suffer a downturn that puts its sustainability at risk. This study concerns this particular period of downturn, in order to identify attributes that characterize it, and to define behavioral stereotypes that may be associated with new projects. On a wide data set from sufficiently contrasted projects, and through the use data mining techniques, we extracted the most influential factors in determining the success or failure of the projects, that will subsequently be grouped together using clustering techniques. Six groups of projects have been identified, each with their own characteristics that define them, two of them clearly guide the projects to success and another one allows the modification its characteristics to move away from failure. This achieved strategy allows us to estimate which potential group would be the result of a new project.

Suggested Citation

  • Aladino Fernandez-Blanco & Joaquin Villanueva-Balsera & Vicente Rodriguez-Montequin & Henar Moran-Palacios, 2020. "Key Factors for Project Crowdfunding Success: An Empirical Study," Sustainability, MDPI, vol. 12(2), pages 1-19, January.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:2:p:599-:d:308427
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    References listed on IDEAS

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    Cited by:

    1. Agnieszka Szewczyk & Zbigniew Stempnakowski, 2021. "Social Energy as the Driving Force behind Crowdfunding—Analysis and Classification of Selected Attributes," Energies, MDPI, vol. 14(19), pages 1-32, September.
    2. Moradi, Masoud & Badrinarayanan, Vishag, 2021. "The effects of brand prominence and narrative features on crowdfunding success for entrepreneurial aftermarket enterprises," Journal of Business Research, Elsevier, vol. 124(C), pages 286-298.
    3. Felix Pinkow, 2022. "The impact of common success factors on overfunding in reward-based crowdfunding: An explorative study and avenues for future research," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 18(1), pages 131-168.
    4. René Vásquez-Ordóñez, Luis & Lassala, Carlos & Ulrich, Klaus & Ribeiro-Navarrete, Samuel, 2023. "Efficiency factors in the financing of renewable energy projects through crowdlending," Journal of Business Research, Elsevier, vol. 155(PB).
    5. Han-Chiang Ho & Candy Lim Chiu & Somkiat Mansumitrchai & Zhengqing Yuan & Nan Zhao & Jiajie Zou, 2021. "The Influence of Signals on Donation Crowdfunding Campaign Success during COVID-19 Crisis," IJERPH, MDPI, vol. 18(14), pages 1-25, July.
    6. Michael J. Ryoba & Shaojian Qu & Ying Ji & Deqiang Qu, 2020. "The Right Time for Crowd Communication during Campaigns for Sustainable Success of Crowdfunding: Evidence from Kickstarter Platform," Sustainability, MDPI, vol. 12(18), pages 1-22, September.
    7. Katarzyna Szopik-Depczyńska & Izabela Dembińska & Agnieszka Barczak & Angelika Kędzierska-Szczepaniak & Krzysztof Szczepaniak & Radosław Depczyński & Giuseppe Ioppolo, 2021. "Does Crowdsourcing as Part of User-Driven Innovation Activity Affect Its Results? An Empirical Analysis of R&D Departments in Poland," Energies, MDPI, vol. 14(18), pages 1-20, September.
    8. Valeria Venturelli & Alessia Pedrazzoli & Giovanni Gallo, 2020. "Birds of a Feather Flock Together: The Inclusive Effect of Similarity Patterns in Equity Crowdfunding," Sustainability, MDPI, vol. 12(9), pages 1-24, April.

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