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2018 ; 20
(2
): 259-274
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English Wikipedia
Project description and crowdfunding success: an exploratory study
#MMPMID29755287
Zhou MJ
; Lu B
; Fan WP
; Wang GA
Inf Syst Front
2018[]; 20
(2
): 259-274
PMID29755287
show ga
Existing research on antecedent of funding success mainly focuses on basic
project properties such as funding goal, duration, and project category. In this
study, we view the process by which project owners raise funds from backers as a
persuasion process through project descriptions. Guided by the unimodel theory of
persuasion, this study identifies three exemplary antecedents (length,
readability, and tone) from the content of project descriptions and two
antecedents (past experience and past expertise) from the trustworthy cue of
project descriptions. We then investigate their impacts on funding success. Using
data collected from Kickstarter, a popular crowdfunding platform, we find that
these antecedents are significantly associated with funding success. Empirical
results show that the proposed model that incorporated these antecedents can
achieve an accuracy of 73 % (70 % in F-measure). The result represents an
improvement of roughly 14 percentage points over the baseline model based on
informed guessing and 4 percentage points improvement over the mainstream model
based on basic project properties (or 44 % improvement of mainstream's
performance over informed guessing). The proposed model also has superior true
positive and true negative rates. We also investigate the timeliness of project
data and find that old project data is gradually becoming less relevant and
losing predictive power to newly created projects. Overall, this study provides
evidence that antecedents identified from project descriptions have incremental
predictive power and can help project owners evaluate and improve the likelihood
of funding success.