Determinants of Campaign Success: Empirical evidence from equity crowdfunding in Japan

This study investigates campaign success in equity crowdfunding, using campaigns listed on a leading Japanese equity crowdfunding platform. We examine how success depends on campaign- and firm-specific characteristics, including the campaign target amount. We provide evidence that campaigns launched by venture capital-backed firms are more likely to succeed than others. We also find that patenting has a positive effect on campaign success, as well as on the campaign target amount. Moreover, campaigns that have already provided services or products have a lower probability of success, although not always, and tend to set a lower target amount. Furthermore, campaigns launched by firms eligible for the Angel Tax System, introduced in Japan as a tax incentive for investment in young and small firms, have a higher tendency to succeed in equity crowdfunding.