Lecture 6

“efforts by entrepreneurial individuals and groups – cultural, social, and forprofit – to fund their ventures by drawing on relatively small contributions from a relatively large number of individuals using the internet, without standard financial intermediaries”

• Donation-based crowdfunding

• Reward-based crowdfunding

• Lending-based crowdfunding (Peer-to-peer lending)

• Equity-based crowdfunding

• Initial coin offering

• Past Success (is positve)

• Backer sentiment (is positive)

• Media (is contraproductive)

• Local culture

• Others opinion (Facebook shares, comments etc.)

• Others Funding decisions

Idea: if you are very motivated and likeable, you score high on the central route, else you go for the peripheral route

• Herding (Jiang, Ho, Yan, and Tan, 2018)

• Affective events (Davis, Hmieleski, Webb, and Coombs, 2017)

• Updates (Block, Hornuf, and Moritz, 2018)

• Information hiding by backers (Burtch, Ghose, and Wattal, 2016)

• Group leader bids (Hildebrand, Puri, and Rocholl, 2017)

• Provision-point mechanism (Burtch, Hong, and Liu, 2018)

We are more likely to work with people, who are similiar to us (homohpily)

• After campaign staters moved their state, the supports from thier original state left in change for new support from the destination states

• Site track record (it came from a reputative site)

• Plaform type

• crowdfunding investor volume