Analysis on Successful Project Completion in Reward-based Crowdfunding

Project creators often encounter difficulties when trying to secure funding. This is primarily because traditional investors view projects as lacking equity, not attractive enough and carrying high risks. However, with the advent of Web 2.0 crowdfunding has emerged as an alternative financing option in recent years. While crowdfunding continues to foster innovation and creativity the success rate of reward-based crowdfunding campaigns is often below 50%. Consequently, project creators are actively seeking solutions to ensure the success of their campaigns while platform operators aim for higher success rates to boost revenue and enhance their platforms reputation. The objective of this dissertation is to identify factors that contribute to successful campaign design and increase the likelihood of project funding in reward- based crowdfunding and within the urban project context. To achieve this goal, a deductive explanatory approach employing quantitative research methods was utilized. The study involved surveys, expert interviews, and data analysis from the platforms Startnext and Kickstarter. The dissertation provides recommendations, for both project creators and platform operators on how to optimize campaign design. It emphasizes the importance of careful planning, social presence, targeted communication, and target-group specific project presentation. Platform operators should also consider offering features that facilitate focused communication and feedback during project preparation. The inclusion of a fan feature has the potential to identify projects that may not be promising. Urban campaigns should build trust and engagement through communication and social benefits. This dissertation contributes to the advancement of theory by examining the factors that contribute to success in crowdfunding. Additionally, it applies insights from research areas like behavioral science, psychology, and e-commerce to the context of crowdfunding. The consideration of crowdfunding in the context of urban development is novel and sheds light on the factors that are important. Overall, this dissertation paves the way for research and provides a solid foundation for further studies. Future research should focus on the impact of experience on support behavior, the further development of platform functionalities, and the use of new technologies, such as blockchain and AI, to ensure success and minimize risk.