Published Online:April 2025
Product Name:The IUP Journal of Applied Finance
Product Type:Article
Product Code:IJAF040425
DOI:10.71329/IUPJAF/2025.31.2.53-74
Author Name:Subhash Karmakar
Availability:YES
Subject/Domain:Finance
Download Format:PDF
Pages:53-74
Crowfunding is considered an important source to raise funds for new ventures or social causes. Researchers have extensively studied the various factors (funding success, funds raised, success ratio, number of backers, time to funding) which impute success to new campaigns. This study includes a dataset of 280 reward-based campaigns comprising around 2.53 million investors and both successful and unsuccessful projects. It compares the campaigns based on two important parameters—percentage of goal achieved and number of backers or funders—using binomial regression. A success ratio is developed based on these parameters to differentiate between the successfulness of projects on different platforms, which serves as an important alternative to ‘funding success’ and ‘number of funders’, which are generally used as parameters for determining the success of a crowdfunding campaign.
Crowdfunding is a fundraising method that pools small amounts of capital from a large number of people to fund a venture. According to the European Commission, “Crowdfunding is a way of raising money to finance projects or businesses. It enables fundraisers to collect money from a large number of people via online platforms.”