• 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.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.15 no.2
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• pp.1-18
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• 2020

This study is to identify the influence of major variables that affect the participation intention of securities type crowdfunding investors and how participation intention and perceived behavioral control affect investors' herd behavior including indirect effect analysis based on the theory of planned behavior. The ultimate purpose of this study is to understand the investment behavior of securities type crowdfunding investors and to help the relevant parties to develop various policies and business plans to revitalize the system and protect investors. An online survey was conducted on people who are interested or have experience in securities type crowdfunding to receive a total of 276 responses. Excluding outliers, a total of 261 responses were taken into account for the final analysis. For the data analysis, structural equation model analysis using SPSS 22.0 and Amos 22.0 statistical package was conducted. As a result, two of the major variables of the theory of planned behavior-attitude and subjective norm-have been found to have a positive effect on the participation intention of securities type crowdfunding investors. And after analyzing the indirect effect, the participation intention was found to play a mediating role between attitude, subjective norm and herd behavior. However, the perceived behavioral control presented as a major variable of behavioral intention in the theory of planned behavior showed that the effect on participation intention was statistically insignificant. Instead, it was found to have a direct positive effect on herd behavior. This is significant because it empirically confirmed that even if investors perceive securities type crowdfunding as easy to participate, perceived behavioral control does not seem to have a significant impact on participation intention because securities type crowdfunding is an investment in an early-stage business with a high risk of loss. On the other hand, the study has great significance in that it empirically confirmed that domestic securities type crowdfunding investors perceive the funding progress information provided by the platform as a signal and imitate many other investors, showing herd behavior when they actually make an investment. It is expected that this study will provide meaningful insights for the policy making of crowdfunding supervisory offices and platform operators by empirically identifying major variables that influence the participation intentions and herd behavior of domestic securities type crowdfunding investors.

• Proceedings of the Korea Information Processing Society Conference
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• 2017.11a
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• pp.382-385
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• 2017

제품 자체는 좋으나, 판로확보 및 디자인역량에 어려움을 지닌 기업을 대상으로 제품의 디자인과 문제점을 보강하여 판매할 수 있는 새로운 개념의 마켓 플레이스에 대한 요구사항이 증가하고 있다. 본 논문에서는 제조사와 디자인 기업을 연결하기 위한 플랫폼 역할을 수행할 수 있는 크라우드 펀딩 시스템의 요구사항을 분석하고 이를 적용한 디자인 중심 크라우드 펀딩 시스템의 설계 및 구현 방안을 제안하고자 한다.

• Journal of the Korean Institute of Intelligent Systems
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• v.27 no.2
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• pp.150-156
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• 2017

In July, 2015, the Korean national assembly passed 'Act on Capital Markets and Financial Investments,' and therefore, it was expected that the crowd funding would be activated owing to a variety of fundraisings and investments. Hence, for the success of the crowd funding, this paper tried to identify the factors affecting the funding. In this study we analyzed the core variables of the Unified Theory of Acceptance and Use of Technology(UTAUT) and their perceived risks on the crowd funding participants' intentions as well as the mediating effects of the attitudes; the core variables of UTAUT were performance expectancy, perceived risk, facilitating conditions, social influence, and the like. As a result, it was found that such facilitating conditions as performance expectancy and social influence would affect crowd funding participants' intention positively, but that effort expectancy and perceived risk would not significantly affect their intention. On the other hand, as a result of testing the mediating effects of the attitudes, it was found that performance expectancy and social influence would have significant mediating effects on participants' intention.

• The Journal of Information Systems
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• v.26 no.1
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• pp.1-19
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• 2017

Purpose This study examines the roles of individual- and country-level social capital in entrepreneurial activities from the context of crowdfunding. Design/methodology/approach Two primary sources were used for data collection. From Kickstarter, the largest U.S.-based crowdfunding platform, this study obtained 15,716 crowdfunding projects and individual-level social capital. For country-level social capital, the social capital index from the 2016 Legatum Prosperity Index was utilized. By matching individual- and country-level social capital for each crowdfunding project, this research estimates the role of social capital in entrepreneurial activities at the individual and country level using the Poisson regression and the negative binomial regression. Findings Individual-level social capital measured by the number of Facebook friends, the number of other crowdfunding projects that a crowdfunding project founder invested in, and the word count of the description of a crowdfunding project are positively associated with the number of crowdfunding projects created by founders. The country-level social capital measured by aggregated social capital index is also positively associated with the number of crowdfunding projects created by founders. Both individual- and country-level social capital have a positive impact on entrepreneurial activities in terms of the creation of new crowdfunding projects.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.12 no.2
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• pp.55-63
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• 2017

Crowdfunding recently receives a great deal of attentions as an alternative finance for small and medium-sized enterprises or business ventures that suffer from financial constraints. Crowdfunding is a new form of platform that enables a large number of people to invest a small amount of money for promising new business items directly. We analyzed the effect of type, period, method of projects on crowdfunding outcomes. We measure the outcome in terms of the ratio of the collected to the target amount. We collected data from three Korean crowdfunding platform companies, and the data consisted of 239 projects from 2012 to 2014. We use both logit and ordinary least square method for evaluation. Generally, the amount of target itself has no effect on the outcome. Equity crowdfunding shows higher success rate and better outcome than rewards crowdfunding. All or Nothing method leads to the higher ratio of the collected to the target amount than Keep It All. There is an inverted U-shape between the number of investors and the ratio of the collected to the target amount. Finally, the ratio of the collected to the target amount is decreasing in a crowdfunding period.

• Review of Culture and Economy
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• v.21 no.3
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• pp.31-58
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• 2018

In this study, we empirically investigated the antecedents of crowdfunding success in the arts and cultural field using the case of Tumblbug in Korea. We collected data on 494 projects listed on Tumblebug in the arts and culture category that includes feature film, documentary, short film, animation, and Web series, as of June 2018. We analyzed the factors associated with the final amount raised via crowdfunding on Tumblbug using the hierarchical regression method. We find that the social capital accumulated by a focal entrepreneur (i.e., the proposer/designer of a focal project) through prior participation in other related projects and social communication activities carried out during the funding period, respectively, have positive effects on the final amount raised. More interestingly, we also find that the intensity of social communication plays a central role in the funding success of arts and culture-related projects by supplementing the lack of the entrepreneur's social capital and the reward features including a given project.

• The Journal of Society for e-Business Studies
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• v.24 no.3
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• pp.35-51
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• 2019

The two main goals of this study are to derive independent factors affecting the success rate of crowdfunding and to empirically analyze the variation of independent factors' effects on the success of crowdfunding by industry (Internet, culture/art, manufacturing/distribution), and funding type (stock type, bond type). To identify the success factors of crowdfunding for invigoration and strategic utilization, first, several variables were refined after interviews with experts and platform operators with investment experiences in numerous crowdfunding projects. Then, independent factors affecting project involvement were categorized as follows: a characteristic of project, participant activity, and enterprise. Also, the results derived from the influence of independent variables on crowdfunding after moderating effects were driven. Selected independent factors in this study are as follows: crowdfunding period, target amount, visual contents, minimum account money, number of comments, number of SNS followers, level of interest, financial Statement disclosure, investment attraction, venture company, intellectual property rights disclosure, and business operation period. Selected moderating factors in this study are as follows: industry (Internet, culture/art, manufacturing/distribution), and funding type (stock type, bond type). In conclusion, a discussion of the academical and practical implications and a suggestion of directions for further research are explained.

• 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.

• The Journal of Society for e-Business Studies
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• v.25 no.1
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• pp.65-82
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• 2020

Start-ups often use crowdfunding platforms such as Wadiz to get financing from corporate investors and general public. These platforms include functions to increase participant activity through the number of comments, interest and online word-of-mouth. This study aims to elucidate how these functions related to a participant activity exhibit mediating effects on a success of crowdfunding and an achievement rate of targeted investment amount. To this end, the individual variables such as progress period, target amount, venture company, experience of attracting investment, possession of intellectual property rights, a career of the representative and an award experience of the representative were classified into the project characteristics, the company characteristics and the representative characteristics through not only previous studies but also interviews with investment professionals and platform operators. Afterwards, this study went through an empirical verification process using a structural equation model that has both crowdfunding performance and participant activity, which is the independent and mediating factors of three perspectives, as well as the dependent variables. In other words, this study analyzes how the characteristics of three perspectives affect the participant activity and how the participant activity had the mediating effects on the crowdfunding performance. In addition, it derives how the analysis results mentioned above vary according to business types (internet services, culture/art, manufacturing/distribution) and investment styles (stock type and bond type). It is expected that this study will help not only in deriving the factors affecting the performance of an investment type crowdfunding but also in preparing the measures to increase a participant activity.