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Book chapter 5 Citations

Financing Nascent Entrepreneurs by Reward-Based Crowdfunding: Lessons From Indiegogo Campaigns

Bernardino, Susana , Freitas Santos, J. , Susana Bernardino , J. Freitas Santos , Silvie Oliveira , Bernardino, S. , Santos, J.F. , Oliveira, S.
ISLA — Instituto Politécnico de Gestão e Tecnologia
Handbook of Research on Nascent Entrepreneurship and Creating New Ventures, 2021 Published by: IGI Global
DOI: 10.4018/978-1-7998-4826-4.ch011

Resume

Abstract
A problem faced by nascent entrepreneurs is to attract outside capital to finance a new venture. A new promising funding mechanism created outside the banking system is crowdfunding (CF). The reward-based model of CF allows nascent entrepreneurs to capture funds from a large group of small investors through a campaign on the Internet. In return for the contribution of the backers, crowdfundees provide rewards (tangible items or services) or other types of incentives. However, in order to be successful a campaign must be designed according to a strategy that encompasses important steps. This study collects data from projects posted in the Indiegogo platform to identify the critical factors of a successful reward-based campaign. The results indicate that it is possible to find an explanation for the different levels of success of reward CF campaigns based on the analysis of the characteristics of the project (depth of the description, updates, and type) and its founders (own presentation, number of backers, team involved, and previous experience).

Keywords

#reward-based crowdfunding #nascent entrepreneurs #startup financing #crowdfunding campaign success factors #Indiegogo #crowdfunding campaign design #founder characteristics #Incentive #venture capital #Order (exchange) #business #Capital (architecture) #Presentation (obstetrics)

Bibliographic Details

Publication Type Book chapter
Publication Year 2021
Journal / Conference / Work Handbook of Research on Nascent Entrepreneurship and Creating New Ventures
ISSN 2327-3429
Publisher IGI Global
Publication Status Published

ISLA Authors & Affiliations

A
Ana Luísa Moreira Soares Martinho
anamartinho@iscap.ipp.pt ID: 8C12-5749-7C00
Profile
J
José de Freitas Santos
430jfsantos@gmail.com ID: 391D-E3FB-7B08
Profile
S
Susana Jacinta Queirós Bernardino
susanajbernardino@gmail.com ID: A21F-D545-8D9E
Profile