Research on Influence Factors of Crowdfunding

Abstract

Crowdfunding - as a booming innovative internet-based financial model is one of the solution to SMEs and entrepreneurs to develop new products in a difficult financing situation. Factors were extracted by studying the process of crowdfunding, combined with relevant literature. Applying the method of optimal scaling regression, this paper researched into the influential factors affecting crowdfunding project financing, based on a survey about 314 projects funded in crowdfunding website in 2013. It was found out that the economic, customer participation, trust, information quality and social network have positive effects on crowdfunding project financing, customer participation making the most influence. Corresponding conclusions and suggestions were put forward to help financing individuals or groups to improve their performance in crowdfunding.
Key words: Crowdfunding; Financing; Optimal scaling; Influence factors; Customer participation