Journal of Applied Economic Research
ISSN 2712-7435
Research of Factors of Successful Crowfunding Finance on the Example of the Russian Boomstarter Platform
T.B. Zambalaeva
National Research Tomsk State University Tomsk, Russia
Abstract
The paper focuses on the factors of a successful crowdfunding financing case – the Russian platform Boomstarter. The aim of the study is to design a model to determine the characteristics of projects which contribute to the collection of funds in crowdfunding. Crowdfunding technology is a process of financing a variety of projects that allows the initiator to request financial support from a large number of people in return for a reward. Thanks to the technology, entrepreneurs can launch campaigns not only on local but also international platforms. As a result, a community is formed around digital platforms that provides an access to a large number of partners and users. The hypothesis of the study is that social and information factors contribute to the achievement of the financial goal of a crowdfunding campaign. This study was conducted on the Boomstarter platform in the technology, hardware and software categories. The empirical database consists of 100 projects hosted by the platform between 2013 and 2019. For each of the projects different characteristics were collected of the financial and economic nature (financial target number of lots with the awards, the number of sponsors, amount of funds) to the characteristics describing the design clearance. Among them is the presence of video and images, the presence of links to social networks. The main method of analysis is econometric analysis in the RStudio program. The results point to four factors that contribute to active fundraising. Namely, the declared amount, social and economic factors, such as the number of news releases published by the founder of the project, the presence of comments left by sponsors, and the number of reposts on social networks VKontakte and Facebook. It is important to note that the characteristics obtained are the only collected factors that can only be obtained at the end of the fundraising process. In addition, the results of the study have every chance of providing recommendations to authors of projects at the stage of their crowdfunding campaign. Thus, crowdfunding technology is a promising and important tool for financing projects.
Keywords
digital platforms; digital economy; crowdfunding; crowdfunding platforms; financing; innovation projects; innovations; Boomstarter; RStudio
JEL classification
O31, L86References
1. Kuppuswamy, V., Bayus, B.L. (2018). Crowdfunding creative ideas: the dynamics of project backers. The Economics of Crowdfunding. Edited by D. Cumming, L. Hornuf L. Palgrave Macmillan, Basingstoke, 151 –182.
2. Zvilichovsky, D., Inbar, Y., Barzilay, O. (2015). Playing Both Sides of the Market: Success and Reciprocity on Crowdfunding Platforms. Journal of Economics & Management Strategy, 1–45. DOI: 10.2139/ssrn.2304101.
3. Chia-Ling, C., Yen-Sheng, L., Han Kun, T. (2019). Does Venture Capital Affect Sponsors Decision? Evidence from Reward-Based Crowdfunding. Proceedings 29th Annual Conference on Financial Economics & Accounting 2018, 2019 Financial Markets & Corporate Governance Conference, 110–115. DOI: 10.2139/ssrn.3318863.
4. Koch, J.A., Siering, M. (2015). Crowdfunding Success Factors: The Characteristics of Successfully Funded Projects on Crowdfunding Platforms. Proceedings of the 23rd European Conference on Information Systems. ECIS, Paper 106. DOI: 10.18151/7217393.
5. Cumming, D.J., Johan, S.A., Zhang, Y. (2019). The role of due diligence in crowd funding platforms. Journal of Banking and Finance, Vol. 108, Issue C, 1–50. DOI: 10.1016 / j.jbankfin.2019.105661.
6. Xie, K., Liu, Z., Chen, L. (2019). Success factors and complex dynamics of crowdfunding: An empirical research on Taobao platform in China. Electron Markets, Vol. 29, No. 2, 187–199. DOI: 10.1007/s12525-018-0305-6.
7. Hoegen, A., Steininger, D.M., Veit, D. (2018). How do investors decide? An interdisciplinary review of decision-making in crowdfunding. Electron Markets, Vol. 28, No. 3, 339–365. DOI: 10.1007/s12525-017-0269-y.
8. Simons, A., Kaiser, L.F., Brocke, J. (2019). Enterprise Crowdfunding: Foundations, Applications, and Research Findings. Business & Information Systems Engineering, Vol. 61, No. 1, 113–121. DOI: 0.1007/s12599-018-0568-7.
9. Cho, M., Lemon, L.L., Levenshus, A.B. (2019). Current students as university donors?: determinants in college students intentions to donate and share information about university crowdfunding efforts. International Review on Public and Nonprofit Marketing, Vol. 16, No. 1, 23–41. DOI: 10.1007/s12208-018-00217-9.
10. Efrat, K., Gilboa, S. (2019). Relationship approach to crowdfunding: how creators and supporters interaction enhances projects success. Electron Markets, 1–13. DOI: 10.1007/s12525-019-00391-6.
11. Eldridge, D., Nisar, T.M., Torchia, M. (2019). What impact does equity crowdfunding have on SME innovation and growth? An empirical study. Small Business Economics, Vol. 0, 1–16. DOI: 10.1007/s11187-019-00210-4.
12. Liu, L., Suh, A., Wagner, C. (2018). Empathy or perceived credibility? An empirical study on individual donation behavior in charitable crowdfunding. Internet Research, Vol. 28, No. 3, 623–651. DOI: 10.1108/IntR-06-2017-0240.
13. Steigenberger, N. (2017). Why supporters contribute to reward-based crowdfunding. International Journal of Entperreneurial Behavior & Research, Vol. 23, No. 2, 336–356. DOI: 10.1108/IJEBR-04-2016-0117.
14. Koch, J., Siering, M. (2019). The recipe of successful crowdfunding campaigns. Electron Markets, Vol. 29, No. 4, 661–679. DOI: 10.1007/s12525-019-00357-8.
15. Dai, H., Zhang, D. (2019). Prosocial Goal Pursuit in Crowdfunding: Evidence from Kickstarter. Journal of Marketing Research, Vol. 56, No. 3, 498–517. DOI: 10.1177/0022243718821697.
16. Dibrova, А. (2017). Understanding the essence of alternative finance: theoretical aspects. New Challenges of Economic and Business Development, Vol. 5, No. 18, 133–142.
17. Laurell, C., Sandström, C., Suseno, Y. (2019). Assessing the interplay between crowdfunding and sustainability in social media. Technological Forecasting and Social Change, Vol. 141, No. 4, 117–127. DOI: 10.1016/j.techfore.2018.07.015.
18. Hartmann, F., Grottolo, G., Wang, X., Lunesu, M.I. (2019). Alternative Fundraising: Success Factors for Blockchain-Based vs. Conventional Crowdfunding. International Workshop on Blockchain Oriented Software Engineering. IEEE, 2019, 38–43. DOI: 10.1109/IWBOSE.2019.8666515.
19. Akatkin, Iu.M., Karpov, O.E., Konyavsky, V.A., Yasinovskaya, E.D. (2017). Tsifrovaia ekonomika: kontseptualnaia arkhitektura ekosistemy tsifrovoi otrasli (Digital economy: Conceptual architecture of a digital economic sector ecosystem). Biznes-informatika [Business Informatics], No. 4 (42), 17–28. DOI:10.17323/1998-0663.2017.4.17.28. (In Russ.).
20. Budovich, Yu.I. (2019). Kraudfanding v zerkale nefinansovoi ekonomiki (Crowdfunding In The Mirror Of The Non-Financial Economy). Biznes. Obrazovanie. Pravo (Business. Education. Law), Vol. 46, No. 1, 40–46. DOI: 10.25683/VOLBI.2019.46.141. (In Russ.).
21. Dolzhenko, R.A. (2016). Nekotorye voprosy otsenki effektivnosti kraudfandinga na otechestvennoi kraudfandingovoi platforme «Planeta» (Some issues of assessing the effectiveness of crowdfunding in the domestic crowdfunding platform “Planeta”). Vestnik Omskogo universiteta. Seriia: Ekonomika [Bulletin of Omsk University. Economics], No. 4, 76–84. (In Russ.).
22. Maslennikov, M.I. (2017). Tekhnologicheskie innovatsii i ikh vliyanie na ekonomiku (The Technological Innovations and their Impact on the Economy). Ekonomika regiona [Economy of region]. Vol. 13, No. 4, 1221–1235. DOI: 10.17059/2017-4-20. (In Russ.).
23. Nekrasova, T.P., Shumeyko, E.V. (2017). Ekonomicheskaia otsenka kraudfandinga kak metoda privlecheniia investitsii (Economic estimation of crowdfunding as a type of fund raising). Nauchno-tekhnicheskie vedomosti SPbGPU. Ekonomicheskie nauki (St. Petersburg State Polytechnical University Journal. Economics), Vol. 10, No. 5, 114–124. DOI: 10.18721. (In Russ.).
24. Osipov, Iu.M., Yudina, T.N., Geliskhanov, I.Z. (2018). Tsifrovaia platforma kak institut epokhi tekhnologicheskogo proryva (Digital Platform as an Institution of the Technological Breakthrough Era). Ekonomicheskie strategii [Economic Strategies], No. 5, 22–29. (In Russ.).
25. Popov, E.V., Gertsegova, E.A., Semyachkov, K.A. (2018). Innovatsii v institutsional'nom modelirovanii dolevoi ekonomiki. (Innovations in the Institutional Modelling of the Sharing Economy). Journal of Institutional Studies, Vol. 10, No. 2, 26–43. DOI: 10.17835/2076-6297.2018.10.2.026-043. (In Russ.).
26. Rukavishnikov, S.V. (2017). Kraudfanding v sisteme predprinimatelstva, ego vidy i ispolzuemye tekhnologii (Crowdfunding In Entrepreneurial System. Types And Technologies). Vestnik Universiteta, No. 2, 189–194. (In Russ.).
27. Rukavishnikov, S.V. Pokamestov, I.E. (2019). Mesto kraudfandingovykh sdelok na finansovykh rynkakh v zarubezhnykh pravovykh sistemakh (Place of crowdfunding transactions in financial markets in foreign legal systems). Ekonomika i predprinimatelstvo (Journal of Economy and entrepreneurship), No. 2, 1177–1185. (In Russ.).
28. Revenko, N.S. (2018). Novye kontury tsifrovizatsii za rubezhom i v Rossii: ekonomika sovmestnogo potrebleniia (New Contours of Digitalization Abroad and in Russia:the Economy of Collaborative Consumption). Ekonomika i upravlenie (Economics and Management), No. 2, 103–110. DOI: 10.26794/1999-849X-2018-11-2-103-110. (In Russ.).
29. Chepurenko, A. (2017). Innovatsionnoe predprinimatel'stvo v stranakh s perekhodnoi ekonomikoi: problemy i perspektivy (Innovation Entrepreneurship in Transition Economies: Problems and Outlook). Foresight and STI Governance, Vol. 11, No. 3, 6–9. DOI: 10.17323/2500-2597.2017.3.6.9. (In Russ.).
30. Yudina, T.N. (2019). Tsifrovoi segment real'noi ekonomiki: tsifrovaia ekonomika v kontekste analogovoi (Digital segment of the real economy: digital economy in the context of analog economy). Nauchno-tekhnicheskie vedomosti SPbGPU. Ekonomicheskie nauki (St. Petersburg State Polytechnical University Journal. Economics), Vol. 12, No. 2, 7–18. DOI: 10.18721/JE.12201. (In Russ.).
About Authors
Zambalaeva Tuyana Bairovna
Post-Graduate Student, National Research Tomsk State University, Tomsk, Russia (634050, Tomsk, Lenin Avenue, 36); ORCID 0000-0002-4451-1000; e-mail: zambalayeva@mail.ru.
For citation
Zambalaeva T.B. Research of Factors of Successful Crowfunding Finance on the Example of the Russian Boomstarter Platform. Journal of Applied Economic Research, 2020, Vol. 19, No. 3, 398--412. DOI: 10.15826/vestnik.2020.19.3.019.
Article info
Received August 14, 2020; Revised August 25, 2020; Accepted September 1, 2020.
DOI: http://dx.doi.org/10.15826/vestnik.2020.19.3.019
Download full text article:
~1 MB, *.pdf
(Uploaded
05.10.2020)
Created / Updated: 2 September 2015 / 20 September 2021
© Federal State Autonomous Educational Institution of Higher Education «Ural Federal University named after the first President of Russia B.N.Yeltsin»
Remarks?
select the text and press:
Ctrl + Enter
Portal design: Artsofte
Contact us
Rector's Office
Rector, Dr. Victor Koksharov
Tel. +7 (343) 375-45-03, e-mail: rector@urfu.ru
Vice-Rector for International Relations, Dr. Maxim Khomyakov
Tel. +7 (343) 375-46-27, e-mail: Maksim.Khomyakov@urfu.ru