• Journal of the Korea Academia-Industrial cooperation Society
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• v.19 no.12
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• pp.515-522
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• 2018

Current signs of a downturn in South Korea's economy include the sharp drop in consumption. Considering internal and external complications such as the raise in minimum wage and fierce global competition, people's taste and purpose of consumption is shifting as well. Under such circumstances, crowdfunding provides a new investment and distribution channel for businesses in their initial stages. Crowdfunding can serve as a key driver of growth in early stages of business operations and lead to growth in consumption as a new distribution channel. This study explores how customers perceive the process of reward crowdfunding, especially when it comes to fairness in procedure, interaction, and distribution. In addition, we further seek how perceived fairness affects customer satisfaction and loyalty in the industry.

• Journal of Industrial Convergence
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• v.15 no.2
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• pp.45-56
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• 2017

The purpose of this study is to analyze the influence of the number of investors influencing the achievement rate of domestic securities type crowdfunding, to find out why the general investors need to participate and to suggest measures to increase the participation of general investors. The results of this study are as follows. First, the effect of the recruitment amount, the target amount, the recruitment period and the business training is confirmed as factors affecting the achievement rate of domestic securities type crowdfunding. And it was confirmed that the influence factors on achievement rate could have a greater effect as the number of general investors increased. Therefore, the government should make more effort to relax regulations on general investors, and the investor of capital should strengthen the public disclosure of KSM through the KSM market in order to recover the funds of general investors, Crowd funding will be able to attract enough funds.

• Journal of Information Technology Services
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• v.20 no.2
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• pp.127-146
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• 2021

Donation-based crowdfunding(DBC) is conducted from voluntary participation by project operators. It requires a different operational strategy than general crowdfunding. However, there is a limited amount of research on the operational strategy of DBC. This study explores the value co-creation(VCC) strategy of DBC and analyzes the operation of DonorsChoose.org. The research questions encompass the following: First, we identify the VCC activities of DBC. Second, we uncover activities of the platform operators that facilitate the participation of project operators in VCC activities. Third, we explore how VCC activities affect project operational performance and platform performance in DBC. By adopting a single case study method on DonorsChoose.org, this study provides meaningful insight and detailed understanding into the VCC in DBC. First, VCC processes of DBC are identified(Co-ideation, Co-design, Co-funding, Co-operation, and Co-evaluation). Also, interactions between platform operators and project operators were defined at each stage. Second, this study confirmed that standardization and simplification of platform operators, support for pre- and post-activity, and high-quality information delivery activities were critical. Third, we confirm that these VCC activities improve VCC operational performance and platform performance. The theoretical significance of this study is that the concept of VCC, previously concentrated on participants with economic drivers(consumers and investors), has been applied to the context of DBC, a form of participation by participants with non-economic drivers(supporters and donors). In addition, this study practically contributes to the practice of VCC strategy among various platform operating strategies in DBC.

• Asia Marketing Journal
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• v.26 no.1
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• pp.1-10
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• 2024

This study explores incomplete decision-making dynamics on reward-based crowdfunding platforms, focusing on temporal and social factors influencing backers' decisions. Utilizing the temporal aspect (i.e., pledging campaign phase) and social aspect (i.e., current pledged amount ratio) as stimuli within the stimulus-organism-response framework, our findings reveal that nearly 50.9% of respondents change their initial decisions, highlighting widespread incomplete information processing. Backers are more prone to altering decisions under heightened time pressure and display herding behaviors. Furthermore, backers exhibit an increased likelihood of changing decisions under heightened time pressure, coupled with a greater chance that the pledged goal amount will not be achieved. The study discusses theoretical and practical implications.

• 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 the Korea Contents Association
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• v.15 no.5
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• pp.560-569
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• 2015

Crowd funding is the method of raising money for a project, companies from a large group of people via the Internet, in return for future products or equity. Kickstarter is the largest and most successful crowdfunding site where creative projects raise reward based funding. Drawing on dataset of 80,267 projects with combined funding over $1.3b from 8.1m people, this paper suggest that backer select project based on their preference on the project, instead profitability of the project. It suggests that well-established platform and big size of network increases the chance of success of the project due to a ripple effect and blockbuster effects. Clear communication about the project's idea and goal is highly correlated with success. Regular communication on the project site, such as by constant progress updates, helps the success of the project. Equity-based crowdfunding is emerging as an innovative means of raising capital for businesses, so it has been receiving a lot of attention and expectation from the government and the market. The findings of this paper and others will help to get some understanding and insight into equity-based crowdfunding. However, Kickstarter differs from equity-based crowdfunding in the goals of the backers. Kickstarter's backers are not investors, they are contributors. To understand equity-based crowdfunding, the subject will need further study.

• The Journal of the Korea Contents Association
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• v.14 no.6
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• pp.54-62
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• 2014

Crowdfunding, a way of raising small size investments or donations from numerous individuals, mostly through internet to fund a project, has attracted global interests. The growth of the social network platform has made crowdfunding easier especially for those in the arts and culture sector. Despite the growth of such vehicle, there has been not much empirical research on the subject. We investigated the relationships between the information in the web sites and its contribution to the success in fundraising. We have sampled 161 projects that were uploaded on Tumblbug.com and studied the type of information that lead to a successful fund raise. As a result, we fould that the contents characteristics including motion-pictures, images, and lengthy texts have positive impacts on the success of fundraising. Fundraising rewards did not show any impacts.

• Journal of the Korea Society of Computer and Information
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• v.22 no.6
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• pp.141-147
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• 2017

Along with the recent growth of Fintech industry and low interest rate basis, one of the alternative investment technique for expecting higher investment profit, P2P loan using P2P financial system is greatly increasing. P2P loan can be referred to as a type of Crowdfunding that the law of Crowdfunding (adopted to revised Capital Market Act) enacted on January 25th 2016 only allows investment type Crowdfunding so that it can be used as a tool of raising fund for startup and venture companies. Also, it is true that Korean government could not make any legislative foundation related to P2P loan. At this moment, those online platform companies mediating P2P loan are not included as financial companies, expected to cause various legal arguments. Financial Services Commission has released a guideline in February of this year saying that limit of P2P loan is 10 million Korean Won per arbitrating company and 5 million Korean Won per borrower. However, what is more important is to make a law supporting this institutional system. If legislation on P2P loan is implemented without care, it may disturb growth of the field but it may result in the damage of investors if not clearly defined by law. As this is the case, first, "revision of execution regulations for loan business" should take place as soon as possible to intensify inspection of loan companies by registering them to Financial Services Commission. Second, saving customer fund separately in the their organization. Third, making law on protecting investors such as regulating exaggerative advertisement. Fourth, to have transparent and fair public announcement system, standardized agreement and guideline describing clear understanding on autonomous public information publication of P2P loan online platform business and information on the borrower.

• 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.

• Journal of the Korea Society of Computer and Information
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• v.28 no.7
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• pp.155-164
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• 2023

In this paper, we examine the influence of Environmental, Social, and Governance (ESG)-related content on the success of online crowdfunding proposals. Along with the increasing significance of ESG standards in business, investment proposals incorporating ESG concepts are now commonplace. Due to the ESG trend, conventional wisdom holds that the majority of proposals with ESG concepts will have a higher rate of success. We investigate by analyzing over 9000 online business presentations found in a Kickstarter dataset to determine which characteristics of these proposals led to increased investment. We first utilized lexicon-based measurement and Feature Engineering to determine the relationship between environment and society scores and financial indicators. Next, Logistic Regression is utilized to determine the effect of including environmental and social terms in a project's description on its ability to obtain funding. Contrary to popular belief, our research found that microentrepreneurs were less likely to succeed with proposals that focused on ESG issues. Our research will generate new opportunities for research in the disciplines of information science and crowdfunding by shedding new light on the environment of online micro-entrepreneurship.