• Asia pacific journal of information systems
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• v.32 no.2
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• pp.275-306
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• 2022

Crowdfunding has emerged as an important financing source for diverse cultural projects and commercial ventures in the early stages. Unlike traditional investment evaluation, where structured financial data is critical, such information is typically unavailable for crowdfunding campaigns. Instead, campaign creators prepare pitches containing essential information about themselves and the campaigns, which are crucial in attracting and persuading contributors. Prior literature has examined the effects of different aspects in campaign pitches, but a comprehensive understanding of the theme is lacking. This study aims to fill this gap by identifying the lexicon of frequently used vocabulary in campaign pitches and examining how they are associated with crowdfunding success. Moreover, we examine how the association differs between culture and commercial crowdfunding campaigns. We randomly collected 50,000 campaigns from the cultural and commercial categories on Kickstarter and extracted the 100 most used verbs in the campaign pitches. Based on a machine learning approach combined with principal component analysis, we constructed sets of verbal factors statistically significant in predicting crowdfunding success. The findings also show that cultural and commercial campaigns consist of different verbal components with different effects on crowdfunding success.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.9 no.4
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• pp.1-12
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• 2014

It is essential factor for business operation to raise funds effectively. However, in Korea, many start-ups and small businesses have difficulties in fund-raising. In recent years, crowdfunding, a new method for funding a project of individuals or organizations by raising monetary contributions from a large number of people, has been growing up simultaneously with diffusion of social media. Crowdfunding is on early stage in Korea, and the majority of projects are focused on cultural or art categories. There is high proportion of projects that have social value in start-up sector. Crowdfunding in Korea has great potential because success rate of it is much higher than its of advanced countries, although market size is much smaller than them. The purpose of this paper is to propose success strategies of crowdfunding for start-up through case study. 5 crowdfunding platforms of Korea and Kickstarter, the platform of United States were investigated. Then we checked the figures related to the operation of the whole Korean projects on start-up. Finally, we made comparison between the cases of success and failure by analyzing 8 project characteristics. The study shows that it were the differences in trustworthiness and activeness of project creator, value of reward and efforts for interactivity that have great effects on success of the project. Whereas there was no significant influence of societal contribution and sponsor engagement. The thesis provides success strategies of crowdfunding for start-up as follows. Firstly, creator of the project should make support base by enthusiastic activites before launching funding project. Secondly, there should be contents that can easily show the process of business development in the project information. Thirdly, there must be appropriate design of rewards for each amounts of support money. Finally, efforts for interactivity, such as frequent updates, response for comments and SNS posting, should be followed after the launch of the project.

• Journal of Service Research and Studies
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• v.11 no.3
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• pp.1-16
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• 2021

Recently, crowdfunding has been receiving increased attention due to the variety of novel ways it provides for connecting funders and fundraisers. Concurrently, however, it has been criticized on the grounds of information asymmetry. We are interested in whether information collected from an asymmetric information source significantly influences crowdfunding success. Through this study, we would like to establish a social field of convergence pursued by Serve Science and to conduct practical research and practice together. First, we investigated the importance of interaction between funders and fundraisers within the crowdfunding platform. In the "comments" section, communication between funders and fundraisers reduces the degree of asymmetric information. In the aspect of presumable funders, they should make the best of the "comments" section to collect more solid information without losing return on their investment. Second, we analyze sentiment-based optimistic and pessimistic information from the "story" (asymmetric source) and "comments" sections. In conclusion, it shows that the optimistic and pessimistic information of the "comments" section has a great impact on crowdfunding success and that the influence of the "story" section is limited to pessimistic information under certain conditions. The crowdfunding platform is an innovative and productive way for startups and entrepreneurs to start a business, and since information an important role in the success of crowdfunding, It can be seen that it is essential to focus on establishing the best communication methods.