Determinants of Crowdfunding Success: Evidence from Social, Environmental, Economic, and Cultural Projects

Abstract

This paper investigates and contrasts the determinants of crowdfunding success of four different groups of projects -social, environmental, economic, and cultural-. Our results demonstrate that while the social and cultural projects probability of crowdfunding success is significantly and negatively sensitive to the requested amount of funds, economic projects probability of crowdfunding success is significantly and positively sensitive to the requested amount of funds. Although, environmental projects probability of crowdfunding success does not display a significant sensitivity to the requested amount of funds. Overall, our findings highlight that projects probability of crowdfunding success is an increasing function of financial benefits. However, financial benefits influence is limited to a narrow success. Financial benefits do not influence projects probability of crowdfunding over success.

Keywords: Crowdfunding, Financial Benefits, Probability of Success

JEL Classification: G30, G32, C30, C33