archetypes of crowdfunders’ backing behaviors
and the outcomes of crowdfunding efforts
jungpil hahn
national university of...
• crowdfunding as important, emerging online mechanism for sourcing
capital
• novel phenomenon with great potential to fue...
• crowdfunding as important, emerging online mechanism for sourcing
capital
• novel phenomenon with great potential to fue...
• 4.2M backers
• $638M pledged
• 42K projects successfully funded
kickstarter.com
Pebble
• 68,929 backers
• $10,266,845 raised
• from $100,000 goal
ouya
• 63,416 backers
• $8,596,474 raised
• from $950,000 goal
3Doodler
• 26,457 backers
• $2,344,134 raised
• from $30,000 goal
an exploratory study
initial research questions
• heterogeneity in crowdfunders’ backing behaviors
• is funding success associated with the typ...
analysis approach
• heterogeneity in crowdfunders’ backing behaviors
• cluster analysis of project backer data
• is fundin...
the data
• randomly select 6,800 completed projects
• 414,737 backers of those 6,880 projects
the data
• randomly select 6,800 completed projects
• 414,737 backers of those 6,880 projects
Kim, Kyeongtae and Hann, Il-...
data sample
0%!
10%!
20%!
30%!
40%!
Art!C
om
ics!
Photography!Publishing!
D
ance!
Film
&
Video!
M
usic!Theater!
D
esign!Fa...
by category
Art!
Comics!
Photography!
Publishing!
Dance!
Film &Video!
Music!Theater!
Design!
Fashion!
Food!
Games!
Technol...
funding goal
$0!
$15,000!
$30,000!
$45,000!
$60,000!
Art!
Comics!
Photography!
Publishing!
Dance!
Film &Video!
Music!Theat...
duration
0!
10!
20!
30!
40!
50!
Art!
Comics!
Photography!
Publishing!
Dance!
Film &Video!
Music!Theater!
Design!
Fashion!
...
number of
backers
0!
200!
400!
600!
800!
1000!
Art!
Comics!
Photography!
Publishing!
Dance!
Film &Video!
Music!Theater!
De...
success rate
0%!
10%!
20%!
30%!
40%!
50%!
Art!
Comics!
Photography!
Publishing!
Dance!
Film &Video!
Music!Theater!
Design!...
funding goal & success rate
0!
200!
400!
600!
800!
1,000!
1,200!
1,400!
1,600!
1,800!
2,000!
0%!
20%!
40%!
60%!
80%!
100%!...
heterogeneity in crowdfunders’ backing behaviors
clusters of backers
Cluster 1!
Cluster 2!
Cluster 3!Cluster 4!
Cluster 5!
Total Projects Backed (250)!
Success Rate (100%)...
clusters of backers
Cluster 1!
Cluster 2!
Cluster 3!Cluster 4!
Cluster 5!
Total Projects Backed (250)!
Success Rate (100%)...
archetypes of backers
• Casual Wanderers:
• infrequent backing but spread across a variety of funding categories
• Focused...
archetypes of backers
portfolio
masters
category
enthusiasts
casual
wanderer
focused
supporter
high
low
low high
backing
f...
is funding success associated with the types of
crowdfunders a project attracts?
backer types and project success
Model 1
Logistic Regression
Model 2
OLS Regression
DV: Project Success DV: % of Goal Rais...
factors impacting project outcomes
• more ambitious projects are less likely to be successful
• longer project duration ar...
some caveats
some caveats
conclusions
• there seems to be some heterogeneity among crowdfunders
• crowdfunding success may depend on crowdfunder het...
conclusions
• there seems to be some heterogeneity among crowdfunders
• crowdfunding success may depend on crowdfunder het...
Archetypes of Crowdfunders’ Backing Behaviors and the Outcome of Crowdfunding Efforts (CIST 2013)
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Archetypes of Crowdfunders’ Backing Behaviors and the Outcome of Crowdfunding Efforts (CIST 2013)

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Archetypes of Crowdfunders’ Backing Behaviors and the Outcome of Crowdfunding Efforts (CIST 2013)

  1. 1. archetypes of crowdfunders’ backing behaviors and the outcomes of crowdfunding efforts jungpil hahn national university of singapore
  2. 2. • crowdfunding as important, emerging online mechanism for sourcing capital • novel phenomenon with great potential to fuel innovation growth • nascent, but growing body of literature on crowdfunding why crowdfunding?
  3. 3. • crowdfunding as important, emerging online mechanism for sourcing capital • novel phenomenon with great potential to fuel innovation growth • nascent, but growing body of literature on crowdfunding why crowdfunding? • implicitly assumed homogeneity in backers and backer behaviors
  4. 4. • 4.2M backers • $638M pledged • 42K projects successfully funded kickstarter.com
  5. 5. Pebble • 68,929 backers • $10,266,845 raised • from $100,000 goal
  6. 6. ouya • 63,416 backers • $8,596,474 raised • from $950,000 goal
  7. 7. 3Doodler • 26,457 backers • $2,344,134 raised • from $30,000 goal
  8. 8. an exploratory study
  9. 9. initial research questions • heterogeneity in crowdfunders’ backing behaviors • is funding success associated with the types of crowdfunders a project attracts?
  10. 10. analysis approach • heterogeneity in crowdfunders’ backing behaviors • cluster analysis of project backer data • is funding success associated with the types of crowdfunders a project attracts? • regression analysis with types of backers and project success
  11. 11. the data • randomly select 6,800 completed projects • 414,737 backers of those 6,880 projects
  12. 12. the data • randomly select 6,800 completed projects • 414,737 backers of those 6,880 projects Kim, Kyeongtae and Hann, Il-Horn “Does Crowdfunding Democratize Access to Capital,” INFORMS CIST 2013 (3 Papers ago) Zvilichovsky, David, Inbar,Yael and Barzilay, Ohad “Playing Both Sides of the Market: Success and Reciprocity on Crowdfunding Platforms,” INFORMS CIST 2013 (Next Session)
  13. 13. data sample 0%! 10%! 20%! 30%! 40%! Art!C om ics! Photography!Publishing! D ance! Film & Video! M usic!Theater! D esign!Fashion! Food! G am es! Technology! Our Data! Kickstarter!
  14. 14. by category Art! Comics! Photography! Publishing! Dance! Film &Video! Music!Theater! Design! Fashion! Food! Games! Technology! Funding Goal! Duration! Backers! Success Rate!
  15. 15. funding goal $0! $15,000! $30,000! $45,000! $60,000! Art! Comics! Photography! Publishing! Dance! Film &Video! Music!Theater! Design! Fashion! Food! Games! Technology!
  16. 16. duration 0! 10! 20! 30! 40! 50! Art! Comics! Photography! Publishing! Dance! Film &Video! Music!Theater! Design! Fashion! Food! Games! Technology!
  17. 17. number of backers 0! 200! 400! 600! 800! 1000! Art! Comics! Photography! Publishing! Dance! Film &Video! Music!Theater! Design! Fashion! Food! Games! Technology!
  18. 18. success rate 0%! 10%! 20%! 30%! 40%! 50%! Art! Comics! Photography! Publishing! Dance! Film &Video! Music!Theater! Design! Fashion! Food! Games! Technology!
  19. 19. funding goal & success rate 0! 200! 400! 600! 800! 1,000! 1,200! 1,400! 1,600! 1,800! 2,000! 0%! 20%! 40%! 60%! 80%! 100%! $100! $1,000! $10,000! $100,000! $1,000,000! NumberofProjects(N)! ProjectFundraisingSuccess(%)! Average Project Funding Goal! Funding Success Rate! Number of Projects!
  20. 20. heterogeneity in crowdfunders’ backing behaviors
  21. 21. clusters of backers Cluster 1! Cluster 2! Cluster 3!Cluster 4! Cluster 5! Total Projects Backed (250)! Success Rate (100%)! Experience (24)! 0%! 20%! 40%! 60%! 80%! 100%! Cluster 1! Cluster 2! Cluster 3!Cluster 4! Cluster 5! Performance! Exhibits! Product Dev! Concentration!
  22. 22. clusters of backers Cluster 1! Cluster 2! Cluster 3!Cluster 4! Cluster 5! Total Projects Backed (250)! Success Rate (100%)! Experience (24)! 0%! 20%! 40%! 60%! 80%! 100%! Cluster 1! Cluster 2! Cluster 3!Cluster 4! Cluster 5! Performance! Exhibits! Product Dev! Concentration! Casual Wanderer Focused Supporter Category Master One-time Trier Category Enthusiast Category Enthusiast One-time Trier Category Master Focused Supporter Casual Wanderer
  23. 23. archetypes of backers • Casual Wanderers: • infrequent backing but spread across a variety of funding categories • Focused Supporter: • infrequent backers predominantly in one type of category • Category Enthusiasts: • moderately frequent backing concentrated in one type of category • Portfolio Masters: • extremely frequent backing across all categories
  24. 24. archetypes of backers portfolio masters category enthusiasts casual wanderer focused supporter high low low high backing frequency category concentration
  25. 25. is funding success associated with the types of crowdfunders a project attracts?
  26. 26. backer types and project success Model 1 Logistic Regression Model 2 OLS Regression DV: Project Success DV: % of Goal Raised Constant 2.8502** (0.3257) 2.4073** (0.1879) ln(Project Goal) -0.3693** (0.0341) -0.1971** (0.0190) Duration -0.0292** (0.0026) -0.0059** (0.0013) Casual Wanderers (%) 1.9496** (0.2457) 0.5054** (0.1460) Focused Supporters (%) 4.8058** (0.4437) 2.1402** (0.2566) Category Enthusiasts (%) -1.6808 (0.8640) -1.2392** (0.4341) Portfolio Masters (%) -21.5169** (2.0081) -3.6664** (0.6405) Number of Obs. (N) 6,343 6,343 Model Fit LR χ2 = 840.49** F = 16.16** R2 0.1437 0.0440 Significance Levels: ** p < 0.01, * p < 0.05
  27. 27. factors impacting project outcomes • more ambitious projects are less likely to be successful • longer project duration are less likely to be successful • attracting casual wanderers and focused supporters is associated with project success • interestingly, attracting a more category enthusiasts and portfolio masters is negatively associated with project success
  28. 28. some caveats
  29. 29. some caveats
  30. 30. conclusions • there seems to be some heterogeneity among crowdfunders • crowdfunding success may depend on crowdfunder heterogeneity
  31. 31. conclusions • there seems to be some heterogeneity among crowdfunders • crowdfunding success may depend on crowdfunder heterogeneity ? !>

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