Search results for "reward-based"
showing 6 items of 6 documents
Crowdfunding performance, market performance, and the moderating roles of product innovativeness and experts' judgment: Evidence from the movie indus…
2023
Reward-based crowdfunding (CF) has emerged as a method to solicit funds for innovative projects. Yet, little is still known about the ability of reward-based CF to act as a signal in the eyes of future consumers, and thus boost the future market performance of new products that innovators intend to commercialize using the campaign funds. In addition, scant research has clarified the boundary conditions that can magnify or weaken the efficacy of this CF signal. Given the relevance of reward-based CF for supporting innovation, understanding when the CF campaign performance works as an effective signal is of great interest, especially in business settings characterized by high product quality …
On the drivers of successful crowdfunding: The case of the platform Verkami
2021
This article analyzes the determinants of successful crowdfunding initiatives using a sample of 5,251 projects from the reward-based Spanish platform Verkami. In contrast to most of the literature that has measured success with a dichotomous variable, we approach success with a continuous one, namely the ratio of achievement, which is measured as the obtained resources over the total amount requested by the promoter. We consider a set of potential determinants of success, which are theoretically well-grounded and cover a variety of spheres related to project features. Results suggest that factors related to the signaling theories such as partnership, having previous experience and interact…
From the crowd to the market: The role of reward-based crowdfunding performance in attracting professional investors
2017
Abstract We focus on new technology-based entrepreneurial ventures engaging in reward-based crowdfunding and examine the effect of their performance in such funding channel on the likelihood of securing subsequent funding from professional investors. We also study how this effect is influenced by the presence of patents granted for the new product idea and the entrepreneur social capital. Results from a sample of technology projects launched on Kickstarter demonstrate that pledging a higher amount of money in crowdfunding can ignite professional investors’ interest and thus help secure subsequent funding. However, this positive evidence is effective only when complemented by the presence of…
Distributed n-player approachability via time and space average consensus
2012
Abstract In this paper we consider repeated coalitional games with transferable utilities (TU) over networks. Namely, we consider a set of n players that have to distribute among themselves a vector of rewards (one for each player). In our network version there is no coordinator allocating the rewards, but the agents have to agree on a common time-averaged vector by updating the local estimates of the reward vector. The common time-averaged reward vector has to approach a suitable constraint set, called core of the game, that guarantees that no agents benefit from quitting the grand coalition. We propose a doubly (over time and space) averaging distributed algorithm. At every iteration, eac…
Reward-based crowdfunding campaigns: Informational value and access to venture capital
2018
We consider an entrepreneur who designs a reward-based crowdfunding campaign when the campaign provides a signal about the future demand for the product and subsequent venture capital is needed. We find that both the informativeness of the campaign and considerations related to gaining access to venture capital funding affect the entrepreneur’s choice of campaign instruments, as well as her decision of whether to run a campaign. In particular, entrepreneurs should launch the campaign either when it is highly informative or when it is not informative at all. For relatively low levels of informativeness, but not so low that the venture capitalist (VC) completely ignores the campaign outcome …
On the signaling effect of reward-based crowdfunding: (When) do later stage venture capitalists rely more on the crowd than their peers?
2021
Abstract Venture capitalists (VCs) make only a small number of investments and are more likely to invest in ventures where other VCs have invested previously. As such, valuable opportunities may be forgone if they are not funded by VCs in the first place. We demonstrate how crowdfunding (CF) can remedy this concern. Using a sample of new technology-based ventures, we reveal that ventures initially funded through reward-based CF can be even more likely than those initially backed by VCs in attracting follow-up funds from VCs. This happens when ventures originally funded via reward-based CF complement the certification they derive from CF with patents and a founding team with a track record o…