The indication of creativity and its effect on the probability of success of crowdfunding projects Online publication date: Mon, 05-Dec-2022
by Carolin Bock; Daniel Dilmetz
International Journal of Entrepreneurial Venturing (IJEV), Vol. 14, No. 4/5, 2022
Abstract: The growing importance of crowdfunding as a fundraising option alongside traditional forms of financing resulted in an emerging stream of literature that examines the mechanisms for increasing the probability of success of crowdfunding propositions. A significant part of this literature focuses on the examination of signals that entrepreneurs can provide to reduce information asymmetries. We extend this research by investigating the proactive communication of the creativity within crowdfunding projects as a potential signal for success. Using 39,718 campaigns from Kickstarter, we investigate the occurrence of words associated with creativity and the resulting influence on the probability of success. Our results show that the proactive communication of the creativity of the projects can have a positive influence on the probability of a successful fundraising campaign. We also provide evidence that the communication of creativity can be influenced by other signals, depending on the context in which these signals are used.
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