סמינר מחלקתי בניהול טכנולוגיה ומערכות מידע

Abstract

Crowdfunding, the process of directly financing projects and ventures over the internet, is gaining momentum. Industry reports estimate that sums raised on crowdfunding platforms have nearly doubled in 2012, totaling close to US$3.0B. The virtualization of the physical funding process has allowed exposure of information which was less accessible in the "real world" of fund raising – such information includes the project initiator's profile (including her social ties), her history of initiating projects and information regarding other projects she supported. Crowdfunding platforms, such as Kickstarter.com, serve as two sided markets which facilitate this information flow and influence the actions of both project owners and backers.

This study evaluates informational and social aspects of crowdfunding networks with special attention to the actions and history of project initiators. We evaluate the impact of a project initiator's crowdfunding network history on her fundraising success. We find that project initiators which have backed other projects prior to starting their own venture significantly increase the funding success for their projects. Our findings suggest an emergence of a community, and social network behavior among Kickstarter users.

This work is part of an ongoing research together with David Zvilichovsky and Ohad Barzilay.