Abstract

Crowdfunding enables individuals and companies to raise money from large numbers of smallscale investors to finance their projects and ventures. Founders of projects and ventures advertise their ideas on crowdfunding platforms: websites that provide a single webpage enabling founders to explain ideas and entice potential investors to make an investment. A financial target is set as well as one or more rewards or repayment methods.

The information stemming from the current study adds to the body of research on crowdfunding by studying the decision-making processes of the crowd. The focus lies on the role of first impressions in arriving at an estimate of the eventual success of the campaign. We apply an experimental methodology to investigate the hypothesis that people predict the success of a crowdfunding campaign equally well, whether given little or unlimited time to study the project’s website. We compare the accuracy of predictions of campaign success and failure made by 8 experienced crowdfunding investors and 8 individuals without crowdfunding experience, for initiatives in the technology and the creative sector.

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