IDEAS home Printed from https://ideas.repec.org/a/spr/elmark/v34y2024i1d10.1007_s12525-024-00712-4.html
   My bibliography  Save this article

Textual sentiment analysis and description characteristics in crowdfunding success: The case of cybersecurity and IoT industries

Author

Listed:
  • Abraham Yosipof

    (College of Law and Business
    International Institute for Applied Systems Analysis)

  • Netanel Drori

    (Northeastern University)

  • Or Elroy

    (College of Law and Business
    University of Oregon)

  • Yannis Pierraki

    (Universitat Internacional de Catalunya)

Abstract

Crowdfunding platforms offer entrepreneurs the opportunity to evaluate their technologies, validate their market, and raise funding. Such platforms also provide technologies with an opportunity to rapidly transition from research to market, which is especially crucial in fast-changing industries. In this study, we investigated how the sentiments expressed in the text of the project campaigns and project characteristics influence the success of crowdfunding in innovative industries such as cybersecurity and the Internet of Things (IoT). We examined 657 cybersecurity and Internet of Things (IoT) projects between 2010 and 2020 that were promoted on Kickstarter and IndieGoGo, two rewards-based crowdfunding platforms. We extracted technological topic attributes that may influence project success and measured the sentiments of project descriptions using a Valence Aware Dictionary and sEntiment Reasoner (VADER) model. We found that the sentiment of the description and the textual topic characteristics are associated with the success of funding campaigns for cybersecurity and IoT projects.

Suggested Citation

  • Abraham Yosipof & Netanel Drori & Or Elroy & Yannis Pierraki, 2024. "Textual sentiment analysis and description characteristics in crowdfunding success: The case of cybersecurity and IoT industries," Electronic Markets, Springer;IIM University of St. Gallen, vol. 34(1), pages 1-14, December.
    • Handle: RePEc:spr:elmark:v:34:y:2024:i:1:d:10.1007_s12525-024-00712-4
    DOI: 10.1007/s12525-024-00712-4
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s12525-024-00712-4
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s12525-024-00712-4?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Crowdfunding; Cybersecurity; Internet of Things; IoT; Sentiment analysis;
    All these keywords.

    JEL classification:

    • D26 - Microeconomics - - Production and Organizations - - - Crowd-Based Firms
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:elmark:v:34:y:2024:i:1:d:10.1007_s12525-024-00712-4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.