Crowdfunding Practices in and Outside the US
Research in International Business and Finance, Vol. 42, pp. 208-223, 2017
Posted: 10 May 2017 Last revised: 26 Jun 2017
Date Written: May 10, 2017
We analyze all Kickstarter projects till December 2013. Their success is driven by the presence of a video, a higher number of rewards, a shorter campaign, and a lower goal. A more extensive description signals higher quality and helps the funding, unless it becomes too prolix. We study the distribution of non-US projects. Categories have different concentrations across countries, but the funding determinants are comparable, as Kickstarter taps the same world crowd. UK and Canada openings increase the number of projects and reduce the probability of success, due to a diminished quality and a lower “collective attention” from worldwide backers.
Keywords: Kickstarter, Entrepreneurial finance, Geography, New Ventures
JEL Classification: G32, L26
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