As a result, identifying general antecedents of funding success (i.e., successfully funded) has been of great interest to researchers because it can provide insights to project creators to maximize their funding success (Greenberg et al. Previous research shows that only 45 % of the projects on these platforms are successfully funded (Greenberg et al. Having their project successfully funded is crucial to project creators as it provides not only initial funds for project development but also access to valuable future resources, and eventually turn their projects into successful entrepreneurial organizations (Mollick 2014). Today, there are approximately 1250 active crowdfunding platforms across the world, which together channeled $16.2 billion in 2014, representing a 167 % increase from $6.1 billion in 2013 (Massolution 2015). In recent years, crowdfunding has emerged as a revolutionary financing model that allows small entrepreneurs to raise funding in the early stages of their projects, particularly those that may otherwise struggle to obtain capital (Kuppuswamy and Bayus 2013 Belleflamme et al. 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. 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. The proposed model also has superior true positive and true negative rates. 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). Empirical results show that the proposed model that incorporated these antecedents can achieve an accuracy of 73 % (70 % in F-measure). Using data collected from Kickstarter, a popular crowdfunding platform, we find that these antecedents are significantly associated with funding success. We then investigate their impacts on funding success.
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. In this study, we view the process by which project owners raise funds from backers as a persuasion process through project descriptions. Existing research on antecedent of funding success mainly focuses on basic project properties such as funding goal, duration, and project category.
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